Stamp Duty receipts remain robust, but storm clouds gather

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, comments on the publication of HMRC’s quarterly SDLT statistics, showing Stamp Duty receipts remain robust, but storm clouds gather.

Key points from publication:

• • Residential property transactions in Q3 2022 were 11% higher than in Q2 2022, and 9% lower than in Q3 2021. 
  • The number of residential transactions liable for Stamp Duty increased by 24% compared to Q3 2021.
  • Residential property receipts in Q3 2022 were 21% higher than Q2 2022, and 46% higher than Q3 2021.
  • The ending of the Stamp Duty holiday in October 2021 is a key factor behind the surge in receipts.
  • May take a few months for Stamp Duty receipts to reflect the gathering gloom in the property market.

Helen Morrissey says:

“Today’s Stamp Duty data looks robust with receipts on the rise and transactions remaining strong, even after the frenetic activity caused by the Stamp Duty holiday which came to an end a year ago. 

“However, storm clouds are gathering over the UK property market, and it may take a few months for the gloom to filter into these figures. 

“Rising interest rates, climbing bills and growing property prices have put a dampener on people’s desire to move as they brace themselves for a tough winter as the cost-of-living crisis continues to bite. Added to this, the fall out of the mini budget has brought further misery with mortgage rates rocketing and lenders pulling deals off the market – moves which have undermined many would-be buyers’ confidence.

“Even government moves to cut Stamp Duty again – usually a hugely popular move – might not be enough to coax people back into a market that has seen real chaos in recent weeks.

“The hope is that the market goes into slowdown rather than a full-on crash.”

Kindly shared by Hargreaves Lansdown

Main article photo courtesy of Pixabay