The amount of stamp duty the government has collected in the third quarter of 2020 has increased significantly on the previous quarter but is down on Q3 last year.
The latest statistics from HMRC show a quarterly rise, which is due to the housing market moving again following the lifting of lockdown in May.
Residential stamp duty receipts rose by 24% to £1,354m in Q3 2020 on the previous quarter but this is 43% down on Q3 2019 when the figure was £2,366m.
In the third quarter residential property transactions were 72% higher than in the previous quarter but 18 per cent lower than in Q3 2019.
Non-residential receipts were up by 33 per cent to £525m in Q3 2020 compared to Q2 but down by 33% to £783m in Q3 2019.
Property transactions in the non-residential space in Q3 2020 was 38% higher than in Q2 2020 and 18% lower than in Q3 2019.
Since the introduction of the stamp duty holiday on 8 July, 568,000 first-time buyers have benefited, and the total amount relieved by these claims is £1,344m.
Search Acumen director Andy Sommerville says: This latest data reveals the scale of demand that has surged into the property market.
“Although the stamp duty threshold has been raised, meaning fewer properties are being caught by the tax, high levels of buyer activity has maintained a healthy stream of receipts for the government.
“Sharp rises in house prices since the reopening of the property market has partially offset the reduction in lower valued properties liable for SDLT. Upward pressure on prices for properties that were priced below £500,000 before the adjustment has pushed them above the new threshold.”
Masthaven director of intermediaries Rob Barnard comments: “The latest statistics are unsurprising after the total shut down of the housing market in the previous quarter. This summer saw a ‘mini boom’ in the housing market and a bounce back from lockdown that few could have predicted.
“Undoubtedly, the revitalisation of the housing sector can be largely attributed to homebuyers looking to take advantage of the stamp duty holiday. However, with the deadline for stamp duty break fast approaching, it’s vital for people looking to move home to act now if they want to benefit from the initiative.”