Residential property sales across England and Wales fell by 18.4% in the year to March 2026, according to new figures from the Office for National Statistics.
The decline comes against a distorted comparison period which included a rush by buyers to complete transactions before temporary stamp duty thresholds ended on 1 April 2025.
Those changes reduced the standard stamp duty nil-rate threshold in England from £250,000 to £125,000, while the threshold for first-time buyer relief fell from £425,000 to £300,000. The maximum property value eligible for first-time buyer relief also dropped from £625,000 to £500,000.
The latest figures add to evidence of weaker transaction activity, with separate HMRC data previously showing residential transactions in March 2026 were 40.9% lower than during the stamp duty-driven surge a year earlier.
COST OF MOVING
Jonathan Stinton (main picture, inset), head of intermediary relationships at Coventry for intermediaries, says higher transaction taxes are increasingly influencing decisions about whether to move.
He says: “A near 20% drop in house sales shows just how significant Stamp Duty has become in people’s decisions about moving home.
“The fall comes after changes to stamp duty left many buyers facing thousands of pounds more in upfront costs. It’s no surprise that some people have decided to stay put rather than take on a higher upfront expense.”
The Bank of England has meanwhile held Bank Rate at 3.75%, although policymakers have warned that persistent inflationary pressures could require rates to rise.
That leaves buyers facing uncertainty over future mortgage costs alongside the higher Stamp Duty thresholds introduced last year.
STAMP DUTY REFORM
Stinton argues the figures strengthen the case for reviewing how property transactions are taxed.
He adds: “Buyers need support, and a thorough review of the way property is taxed would be a good place to start.
“Any review should look at how we make moving home more affordable without creating higher costs elsewhere.
“A healthy housing market depends on people being able to move when they need to, whether that’s for work, a growing family or the next stage of life.”
