According to latest figures from HMRC a total of 84,300 homes were sold in May, almost 14% lower than in the same month last year. It seems to be the increase in stamp duty and the looming EU referendum which seems to be affecting buyers confidence.
HMRC’s own commentary on the figures said: “The large increase in transactions for March 2016 followed by the substantial reduction in April is likely to be associated with the introduction of the higher rates on additional properties in April 2016.”
The department pointed out that while the number of homes sold in April and May this year was lower than the corresponding months last year, the total number of homes sold in March, April and May was in fact higher.
The continuing ripple effect of the governments stamp duty seems to be clearly shown in the above figures. However it comes down to the simple rule of demand and supply. The constant shortage of houses in the UK is the reason why house prices are on a consistent rise. As the year goes by there’s always the possibility the market may pick up again in the summer months.