HMRC’s property sales report won’t be happy reading for Rachel Reeves
HMRC’s provisional figures for property sales in the UK published today will not be happy reading for the chancellor, Rachel Reeves, as they show the property market is still weak, say leading audit, tax and business advisory firm, Blick Rothenberg.
Heather Powell, head of property at the firm, said: “The provisional statistics show sales of both residential and commercial properties in November 2024 fell back from the numbers reported in October 2024.”
She added: “Reported residential sales for the year to November 2024 are up 12% on the previous year and the sale of commercial property is up 7.9%, but the annual figures are still significantly below historic peaks. The property sector is not leading the way to Economic Growth for the chancellor.”
Heather said: “Another factor decreasing property sales in November 2024 is likely the effects of the October Budget. Presumptions about the chancellors intentions in terms of Stamp Duty Land Tax (SDLT) appear to have caused buyers to push to complete purchases in October 2024 as they were worried SDLT increases were going to be introduced on Budget Day.”
She added: “The chancellor may need to revise her estimates of SDLT to be collected on property transactions in 2025 based on today’s report, but she will also need to consider the impact on the broader economy, and tax receipts from businesses that rely on the sector.”
Heather said: “An active residential market supports service and retail businesses, including the agents and lawyers involved in the sale process as well as businesses involved in the refurbishment and furnishing of the homes acquired by buyers.”
She added: “An active market for commercial properties regenerates the infrastructure that supports UK industry – providing better workplaces, improves the energy efficiency of the buildings, and supports all the professions and industries that service the refurbishment and fitout of commercial properties. These activities all generate VAT and corporation tax receipts on corporate activity, as well as income tax and national insurance receipts from the pay of the workforce employed.”
Heather said: “The confidence of employers and employees have been shaken by the October 24 budget, and both are needed for an active property sector, the bedrock of a growing economy.”