The number of residential property transactions decreased by 45.2 per cent between March and April, according to the latest HM Revenue & Customs data.
April's seasonally adjusted figure was 14.5 per cent lower compared with the same month last year.
The official UK property transaction count last month was 84,280 residential and 10,090 non-residential transactions.
HMRC put the large increase in transactions for March, followed by the substantial reduction in April, down to the introduction of the higher rates on additional properties.
“However, whilst April 2016 is lower than April 2015, it should be noted that the total for March and April 2016 is still substantially higher than the corresponding period last year,” the publication noted.
“Additional non-tax factors may have played a role as well, for example the Bank of England’s plans to curb buy-to-let mortgages resulting in a rush to purchase,” it continued, adding the residential count includes properties paying the main and additional rates.
For April, the number of non-adjusted residential transactions was about 59.2 per cent lower compared with March.
Jeremy Duncombe, director of the Legal & General Mortgage Club, said it was not surprising to see transaction figures drop in April.
He said: “This is largely due to the slow down of activity in the buy-to-let market, following March’s peak completions as investors rushed to finalise transactions ahead of the Stamp Duty deadline.
“It is house price inflation, and not a huge surge in transaction figures, that is the main culprit in sending the cost of owning a home in this country sky high.”
Mr Duncombe added that it is likely transaction figures will flatten as the European Union referendum nears, in similar fashion to the lull before last year’s general election.
peter.walker@ft.com
