The monthly total of residential property transactions in the UK fell by 10.5% in April compared to March, new HMRC figures have revealed.

HMRC’s non-seasonally adjusted estimate reached 97,970 in April, which was also 13.9% lower than the same month in 2021.

For non-residential transactions, the non-seasonally adjusted estimate was 10,050 for April. HMRC confirmed this figure was 16.7% down on March’s total, as well as 7.0% lower than April last year.

HMRC’s monthly estimates are based upon its own records as well as those of Revenue Scotland and the Welsh Revenue Authority (WRA) for Stamp Duty Land Tax (SDLT), Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) respectively.

Commenting on the latest figures, MPowered Mortgages distribution director, Emma Hollingworth, said: “While we haven’t yet seen the high level of activity seen throughout the market in 2021, it is pleasing to see that transactions figures remain robust.

“Despite a further rise in interest rates, and the cost of living continuing to increase, there is still strong demand in the market. This is further proof of the resilience of our housing market and its ability to perform strongly through difficult economic times.

“However, with rates increasing at a rapid pace and with some economists predicting six more rate hikes in 2022 to a new high of 2.25% by year-end, time is of the essence for those looking to buy a home – and securing a mortgage before rates move again is paramount. The window of availability on mortgage deals is now shorter than it has ever been before, averaging just 21 days.”

Air Group CEO, Stuart Wilson, added: “The mood music around the property market has certainly shifted in the last week or so, with swirling speculation around a dip in activity and average house prices as the cost-of-living crunch presses on. April brought hikes to the energy price cap, national insurance contributions, and council tax bills – all three of which are likely to have seen people tighten their belts and dented future purchase plans.

“However, with the property market having enjoyed strong growth over the last few years – thanks in part to the stamp duty holiday – older homeowners do have wealth tied up in their property that they can fall back on. Whether it is to repay an outstanding mortgage, support the younger generation or increase their retirement income, advisers should be having these conversations with their clients.”

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