Residential property transactions dropped by 3.2 per cent between March and April, according to HMRC data.
Seasonally adjusted transactions were 99,910 in April – down from 103,220 the previous month, the statistics show.
On an annual basis, transaction levels were 20.3 per cent higher, but the figure was skewed by the rush to complete buy-to-let deals ahead of a 3 per cent rise in stamp duty introduced in April 2016.
Transactions spiked at 169,440 in March last year before falling back to 83,050 the following month, after which they grew steadily to edge past the 100,000 mark in January.
The news comes after the Royal Institution of Chartered Surveyors (Rics) warned supply shortages were holding back growth in the housing market.
Some 9 per cent more respondents to Rics’ residential market survey saw a drop in sales during April - the weakest reading since the aftermath of the referendum on membership of the European Union.
Jeremy Duncombe, director, Legal & General Mortgage Club, said: “It is not surprising to see property transactions return to their usual levels this month. March’s figures may have shown a fall in transactions, but it’s important to bear in mind that this data was largely skewed by last year’s buy-to-let rush ahead of the April stamp duty rise.
“For the most part, property transactions have remained flat in recent times, as a lack of suitable housing stifles the market and pushes up property prices.
“As a result, the next generation of homeowners is still struggling to make that first step onto the ladder amid a housing market that is characterised by a supply-demand crisis.
“Whatever the outcome of the upcoming General Election, the next government must make fixing our broken housing market a priority.”
simon.allin@ft.com
