Residential property sales plunge nearly 20% after stamp duty threshold change
Residential property sales in England and Wales plummeted by 18.4% in the year to March 2026, compared with the previous year, suggesting that stamp duty costs are a barrier for buyers.
Data from the Office for National Statistics (ONS) showed that sales dropped across every region following the stamp duty threshold change in April last year.
The figures showed how lower stamp duty costs stimulated activity in the housing market, as the last stamp duty holiday during the years 2020-21 revealed that residential sales volumes were at 726,832 in March 2020 and rose 4.7% to 761,154 in March 2021. Between March 2020 and December 2021, sales volumes also rose 33%.
Jonathan Stinton, head of intermediary relationships at Coventry for Intermediaries, said: “A near 20% drop in house sales shows just how significant stamp duty has become in people’s decisions about moving home. The fall comes after changes to stamp duty left many buyers facing thousands of pounds more in upfront costs. It’s no surprise that some people have decided to stay put rather than take on a higher upfront expense.
“The wider outlook isn’t getting any easier. While the Bank of England held the base rate, further increases are still expected before the end of the year, adding to the financial pressures facing buyers at a time when affordability is already stretched.”
He added: “Buyers need support, and a thorough review of the way property is taxed would be a good place to start. Any review should look at how we make moving home more affordable without creating higher costs elsewhere.
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“A healthy housing market depends on people being able to move when they need to, whether that’s for work, a growing family or the next stage of life.”
