Transactions dropped to 290,740, whilst tax receipts fell to £2.4bn recording a decrease of £213m, according to analysis by investment firm LCP on HMRC’s quarterly stamp duty land tax (SDLT) statistics.
This is the third consecutive quarterly fall with a combined total of £685m in lost revenue compared with the first three quarters of 2017.
The analysis showed that higher rate for additional dwellings (HRAD) receipts fell by 12.7% since Q3 2017, standing at £454m. This is due to a 14.2% fall in HRAD transactions since Q3 2017, which now stand at 56,100.
Around 58,800 buyers have claimed first-time buyers’ relief (FTBR), which represents 21% of all transactions and equates to a tax giveaway of £142m.
Naomi Heaton, CEO of LCP, said that the main rate of stamp duty, which excludes the 3% higher rate for second homes (HRAD), has seen a fall of 7.1%, with HRAD receipts suffering the largest drop.
She added: “HMRC stamp duty statistics do not paint a rosy picture of the UK housing market, with neither the buyer nor the exchequer winning out.
“Until the government has a clear road map for Brexit we are unlikely to see increasing transactions and therefore increased revenues. Whilst it is highly unlikely that the government will repeal any of their recent tax increases it certainly does not seem to be the time to implement more.”
