Unsurprisingly total Stamp Duty transactions in Q4 2021 (October to December) were 10% lower than in Q3 2021, and some 13% lower than in Q4 2020.
The fall in transactions in the last two quarters followed four quarters of continued growth that were impacted by the introduction of the Stamp Duty holiday for residential properties.
Andrew Montlake, managing director of London-based mortgage broker, Coreco, said: “Even though residential transaction volumes were down in the fourth quarter of last year compared to the previous quarter and same quarter of 2020, they were still high.
“Activity levels have been massively skewed by the Stamp Duty holiday. Receipts rebounded in the final three months of the year as Stamp Duty was back at its normal levels. The Government will be pleased, if nobody else will.”
Ross Boyd, CEO of mortgage switching platform, Dashly, added:: “It’s no surprise that transaction levels were down in the final quarter of last year, as the stamp duty holiday brought a significant number of sales forward.
“Understandably, many people rushed out to buy and activity levels went off the scale. But another reason why transaction levels are down is the fact stock levels are the lowest they have been for many years.
“Receipt levels bounced back in the final quarter because the stamp duty reliefs were no longer available.”
Paul Neal of Derbyshire-based Missing Element Mortgage Services, concluded: “Stamp duty is archaic and needs to be abolished. It’s is one of the barriers many people face when purchasing a new property, but it’s a licence to print money for the Government and so I can’t see it going anywhere. Bring back the town crier, at least they served a purpose.”
