Total Stamp Duty Land Tax (SDLT) transactions between July and September this year were 15% higher than in the previous quarter, and 8% higher than in Q3 2023, according to the Office for National Statistics (ONS).
Residential property transactions in Q3 were 17% higher than in the previous quarter, and 9% higher year-on-year.
Meanwhile, non-residential property transactions were 2% lower than in the previous quarter, but up by 4% compared to Q3 2023.
Karen Noye, mortgage spokesperson at Quilter, said: “SDLT transactions rose 15% from Q2 and 8% compared to Q3 2023. They may soon start to increase rapidly as a result of yesterday’s announcement of an increase stamp duty on second homes by 2% to 5%, effective today.
“Although the flip side is that the changes could simply put buy-to-let investors off even more following years of the tax landscape becoming ever more hostile to them. Residential transactions led the growth in stamp duty with a 17% quarter-on-quarter increase, underscoring continued demand despite broader economic uncertainties. Conversely, non-residential transactions declined 2% from Q2 but still posted a 4% year-on-year increase.
“In terms of lending, lenders continue to engage in a price war which is helping to keep mortgage rates down despite the uncertainty posed by the budget. However, the anticipated end of the first-time buyer stamp duty threshold uplift in March 2025 could trigger a rush among new buyers, although many will still grapple with affordability challenges due to relatively high mortgage rates.”