The number of seasonally adjusted buy-to-let transactions has slumped to its lowest level for more than a year, according to HM Revenue and Customs figures.
During November there were more than 8,900 transactions, compared to 10,130 in the month before and 9,690 in September.
The slump coincided with the announcement of a new rate of Stamp Duty in the Autumn Statement, meaning buy-to-let investors and owners of second homes will pay 3 per cent more from next April.
The seasonally adjusted number of non-residential property transactions decreased by 11.5 per cent between October and November.
November’s figure is 6.4 per cent lower compared with the same month last year.
The 31-page UK Property Transaction Statistics document said: “The trend in non-residential property transactions has been that of a generally flat seasonal cycle between September 2010 and September 2013, but since then there has been a rising trend.”
Meanwhile, the seasonally adjusted number of residential property transactions decreased by 5.7 per cent to 101,960 between October and November.
Jeremy Duncombe, director of the Legal and General Mortgage Club, said the shape of the mortgage market is changing, with fewer home movers and first-time buyers and more people using cash to buy a house.
“This is worrying as properties are not circulating as often as they used to, meaning the lack of supply continues. New homeowners make up a smaller proportion of these transactions as the UK’s housing deficit persists.
“With the market tilted heavily towards the demand side, it remains ever important for the government to ramp up house building and also introduce measures that encourage more efficient use of existing housing stock.”
Andrew Bridges, managing director of Stirling Ackroyd, commented that the property market is still being haunted by the usual ghosts of Christmas past – annual price rises, feverish demand and a scant supply of new homes.
“As transactions dip, all sides of the housing market feel the effects. Stamp duty changes appear to have caused concern at the top end and for those at the bottom – it’s a constant tussle with affordability.”
The Help to Buy: Isa was launched earlier this month and chancellor George Osborne also introduced a new Help to Buy scheme for London.
But these schemes have been criticised for stimulating demand while only helping those who do not necessarily need it.
damian.fantato@ft.com
