According to the latest data from HMRC, total SDLT transactions in the final quarter of 2020 were 14% higher compared with the corresponding quarter in 2019
The total number of Stamp Duty Land Tax transactions in the last quarter of 2020 was up 43% on Q3 2020, according to the latest HMRC stamp duty statistics.
The figures also show that total SDLT transactions in Q4 2020 were 14% higher than in Q4 2019.
According to HMRC, the increase in transactions has likely been impacted by the introduction of the SDLT holiday for residential properties, alongside the continued release of pent-up demand within the property market.
Residential property transactions in Q4 2020 were 44% higher than in Q3 2020 and 16% higher than in the corresponding quarter in 2019.
Nick Leeming, chairman of Jackson-Stops, commented: With transactions in Q4 2020 16% higher than the same time last year, and the numbers of buyers exempt from SDLT exempt up by a huge 127%, the data demonstrates how the government’s SDLT holiday, alongside a huge shift in lifestyle aspirations, has contributed to the active property market we have seen since the summer.
As highlighted by members of parliament this week, what we must avoid now, for the property sector and the wider economy, is a cliff edge where all economic support suddenly drops away, especially as we have not yet seen the full economic impact of the virus, he said.
Given that the current lockdown has created a logjam in the market, exacerbated by procedural delays with mortgages and conveyancing, Leeming points out that vast numbers of buyers are at risk of missing out on SDLT relief “through no fault of their own”.
He continued: That won’t just impact individuals, but buyers throughout chains, putting a significant number of transactions at risk. Removing support suddenly would also have a ripple effect beyond the property market, as retailers, moving companies, tradespeople and countless others suffer from a reduction in market activity.
The total SDLT receipts – including non-residential property transactions – in Q4 2020 were 47% higher than in Q3 2020, although there was a 16% fall year-on-year.