Coventry Building Society is calling for stamp duty reform as residential property transactions fell to a four-year low in the first quarter of 2024, according to an analysis of the latest HMRC figures.
There have been 192,500 property transactions since January, which is the first time the number has fallen below 200,000 since the second quarter (April-June) of 2020. This was just before the temporary stamp duty holiday was introduced in July 2020.
Before 2020, housing transactions had not fallen below 200,000 since the second quarter of 2011.
Since registration began in 2008, there have been only eight (out of 64) quarters in which the number of housing transactions was below 200,000.
Jonathan Stinton, head of intermediary relations at Coventry BS, said: “The first part of the year is usually quieter for property transactions, but this year has started particularly slowly. It was always expected that the number of people moving would fall once the 2020-2021 stamp duty holiday was over, but the numbers have continued to fall and now we are back to 2011 levels.”
He added: “Making the right changes to stamp duty could lubricate the market, but it must be a carefully considered reform aimed at building long-term stability, rather than a sudden sharp increase in the numbers.
“Temporary vacations and simplistic cuts are mainly short-term solutions that don’t necessarily help buyers years down the road. The challenge is to be creative, because the same old tinkering around the edges won’t stand the test of time.”