HM Revenue & Customs’ Stamp Duty Land Tax (SDLT) take – the land tax that must be paid by homebuyers, with the exception of most first-time buyers, when purchasing property costing over £125,000 – was £2.66bn in Q1 this year, down four per cent from £2.78bn in Q1 2018.
However, the figures are not directly comparable, as Q1 2019 only accounts for England and Northern Ireland after SDLT for Wales devolved at the beginning of Q2 2018.
The total was also 19 per cent lower than in Q4 2018, although the first quarter of the year is typically lower than the end of the year preceeding.
Transactions decreased by 20 per cent from 316,200 in Q4 2018 to 253,900 in Q1 2019, mirrors a 20 per cent fall over the same period last year, with similar falls occurring over the same period for several years.
Revenue from additional dwellings SDLT, typically paid for second homes or on buy-to-let purchases continued to fall for the fifth consecutive quarter.
The total raised was down to £811m, a fall of £54m or around 6 per cent, on Q1 2018. Transactions in this category also fell 4,100, about 7 per cent, to 51,000.
Most of the overall decrease in Q1 2019 is due to residential transactions, which fell to 225,500 in the first quarter. In the previous year there was also a 21 per cent fall compared to the previous three months. Residential receipts in Q1 2019 fell by 26 per cent.
Non-residential transactions – for which the stamp duty tax threshold is £150,000 – fell by six per cent to 28,500 this quarter. There was a similar six per cent fall for the previous year. Non-residential receipts fell by three per cent in Q1 2019.
The number of transactions which involved borrowers claiming first-time buyer’s relief was 46,800, making a total of 288,300 claims since the relief’s introduction. The estimated total amount relieved is £680m.