The number of residential property transactions in the UK in March dipped by 39% compared to the same month last year, new HMRC figures have shown.

HMRC’s provisional non-seasonally adjusted estimate was 101,070 in March, which did represent a 16% month-on-month increase from February, however.

The monthly estimates for property transactions by HMRC are based on its own records as well as those of Revenue Scotland and the Welsh Revenue Authority, for Stamp Duty Land Tax (SDLT), Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) in each of the three nations, respectively.

For non-residential transactions, HMRC’s estimate for March was 12,220, a total marginally lower than the same month last year, by less than 1%, but 38% higher in comparison to February.

Director of specialist lender, MT Finance, Tomer Aboody, commented: “With transactional figures significantly lower than 12 months ago when buyers raced to take advantage of the stamp duty holiday, and the Government not only reluctant to help but having a negative impact on the market, we could see the situation worsen.

“Although the property market has always been the platform for a strong economy, even if demand is strong, there is only so much negativity that buyers and sellers can take before sentiment switches.

“Buyers have been resilient in tough conditions, but one wonders for how much longer this will be the case.”

President of OnTheMarket, added: “In the past week, some of the biggest lenders have reduced their mortgage rates, helping ease borrower affordability.

“Increased stock, as sellers try to take advantage of the spring market, means buyers have more choice than has been the case for a while. This is putting them in a stronger negotiating position and they remain price sensitive.”

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