Property Watch: August 2022 UK residential property transactions

The graph below shows the UK residential property transactions for the years to 31 August 2021 and 2022 as reported by HMRC through Stamp Duty Land Tax (SDLT) reporting.

Residential 2022


*June to August 2022 figures are provisional due to delays in collecting all relevant SDLT reporting, but the figures are unlikely to materially change.

The table above shows:

  • The August 2022 residential property transactions were 9.7% higher than August 2021 and 4.4% higher than July 2022.
  • Not shown in the above graph, but the August 2022 transactions were higher than the August 2019 (pre-COVID) transactions by 2,840 transactions.
  • Despite the Bank of England base rate increasing to 1.75% in August 2022 from 1.25% in July 2022 (0.1% in August 2021) the residential property transactions remained strong in this month.

Key points to note:

  • The transaction spikes in March 2021 and June 2021 were a result of the expected and extended end to the £500k SDLT holiday enacted in response to the COVID-19 pandemic.
  • The September 2021 transaction spike was a result of the end to the £250k SDLT holiday enacted in response to the COVID-19 pandemic.

Mini Budget

In my previous article looking back to 2005 which can be viewed HERE, in which I highlighted how SDLT policy can have a material effect on the UK property market.

There were two SDLT announcements in the ‘mini budget’ on 23 September 2022, these were:

  • The threshold for residential property transactions that can take place without any SDLT liability arising was doubled from £125,000 to £250,000 (surcharged transactions on second properties and corporate transactions will pay 3% up to this threshold).
  • The threshold within which first-time buyers can purchase a property without paying SDLT was increased from £300,000 to £425,000 and the maximum value of a property qualifying for this relief was increased from £500,000 to £625,000.

Anecdotal evidence suggests that by the end of November the effect of the current economic climate will begin to reflect in these figures with a downturn in property transactions from the current levels expected. Only time will tell if the growth plan announced in the mini-budget is sufficient to at least limit the effects of the expected market slowdown.

Ballards LLP’s property team has extensive experience acting for property-related businesses and can assist investors, developers and associated trades with all financial property matters including; tax efficient structuring, SDLT planning, Annual Tax on Enveloped Dwellings planning and reporting, and any other financial matters associated with property ownership.  We act for all sizes of businesses.

If you would like to find out how we can help please contact Martin Adams at or on 01905 794 504.

All data is © HM Revenue & Customs.

Disclaimer. This article has been prepared for information purposes only. Formal professional advice is strongly recommended before making decisions on the topics discussed in this release. No responsibility for any loss to any person acting, or not acting, as a result of this release can be accepted by us, or any person affiliated to us.

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