In an analysis of HMRC’sResidentialStamp Duty Land Tax (SDLT) statistics, LCP found there were 253,400 transactionsin Q2, 2.9% less than that from the previous year
The prospect of a general election and a hard Brexit may further hit property market, Naomi Heaton, chief executive of LCP has argued.
In an analysis of HMRC’sResidentialStamp Duty Land Tax (SDLT) statistics, LCP found there were 253,400 transactionsin Q2, 2.9% less than that from the previous year and transactions on properties with the extra 3% stamp duty also dropped, falling by 2.7%from Q2 toreach 56,020.
Heaton said: “Tumblingsterling may help buoy uphigh value sales but the prospect of a general election and a hard Brexit may further rattle the property market.
“It is reported thatPM Boris Johnson is looking at scrapping stamp duty for properties below £500,000 and reducing the top rateof12%, a legacy ofex-Chancellor George Osborne, back to 7% - a welcome stimulus measure.
“It will be interesting to see if healsorolls backtheproposed1% additional levy for overseas buyers,now thatPhilip Hammondhas beenshown the doorat No.11andNo.10 wantsto showthe worldthatthe UK is open for business.”
There was an increase of 8.2% in stamp duty receipts and 6.8% in transactionsin Q2 2019,compared withthe previous quarter.
Heaton added: “There musthavebeena collective sigh of relief fromthe Exchequer.
“The modest uptick in Q2 does reflect the increase in market activity reported byLCP’s June residential index.
“However, overall tax take for thelast 12 monthsis £8.4bn compared with £9.5bn in 2017, a fall of11.5%. This can only be a cause for concern for the Exchequer.
“The number of people claimingFirst Time Buyers’Relief in Q2 was 52,600, almoststatic compared with the previous year.
“However, from a peak of 60,800,numbers havefallen13.5%, another disappointing result for the government as they endeavour to stimulate thefirst-timebuying market.”
