Residential transactions remain subdued despite monthly fluctuations: HMRC

Non-seasonally adjusted residential transactions in August 2019 were approximately 0.4% lower than August 2018.

Mark Harris, chief executive of SPF Private Clients, commented: "Transaction numbers remained fairly subdued in August on a year-on-year basis, despite HMRC showing a significant fluctuation compared with July. But a steady market is what you would expect for the time of year - with the added spectre of Brexit looming, buyers and sellers didn’t have to look far for an excuse not to do anything but sit on their hands.

"Business has picked up as we have moved into the autumn with people coming back from their holidays more willing to get on with things. Lenders are still competing fiercely for a relatively modest pool of business so rates remain cheap. Borrowers still have lots of choice, even if supermarket banks such as Sainsbury’s and Tesco are pulling out of the lending market."

Joshua Elash, director of MT Finance, added: "Residential transactional volumes are down year-on-year as the sector continues to suffer from an overly-aggressive stamp duty regime and broader macro-economic uncertainty.

"The market needs a catalyst in the form of either visibility on the Brexit end-game or stimulus in the form of stamp duty reform. This is evidenced by the contrasting increase in volumes in commercial property, which is subject to different stamp duty levies.

"If HMRC wants to generate greater revenues, it needs to encourage greater transactional volumes by reforming or rolling back the stamp duty regime on residential property."