HMRC figures show that SDLT receipts for the period February 2013 to February 2014 topped £9bn, while the comparable figure for the preceding twelve months was £6.9bn.

There was also an increase in the number of homes sold during the period, with the transaction figures rising from 935,910 to over 1.12m, although this was at a slower rate.
Nimesh Shah, senior manager at Blick Rothenberg, said: ‘SDLT receipts are 31% higher in the 12 months to February 2014 than the previous 12 months. However, and interestingly, the number of residential property transactions during the same period is only 19% higher.’

While the increase in the number of property transactions during the period did increase property tax revenues, the main reason for the increase was more activity at the top end of the property market. 
‘The SDLT rates applying to residential property transactions over £1m and £2m are 5% and 7% respectively,’ says Shah.

Last week’s Budget contained further indications that the government is likely to see more increases in tax revenues from the property market. It include the announcement that the annual tax on enveloped dwellings (ATED) will be extended to include properties valued between £1m and £2m from 1 April 2015 and above £500,000 from 1 April 2016.

In addition, changes to the rules governing the use of defined contribution pension pots are also likely to boost housing transactions and potentially see an increase in the amounts of SDLT paid, according to KPMG’s analysis.  

Stephen Barter, chairman of KPMG’s real estate advisory practice, said: ‘Unlocking pensions will enable more parents to lend a helping hand to their children as they look to buy their first home. It could also fuel the buy to let market, with people liberating their nest egg to invest in property and benefit from the rental income this would bring to them throughout their retirement.’