Total stamp duty transactions fell 29% in the first three months of the year compared to the previous quarter, hitting their lowest level since the introduction of pandemic social distancing rules in March 2020, data from HMRC shows.  

This fall at the start of the year, follows rises in the previous two quarters and is 13% lower than a year ago.  

Residential property deals in the first quarter — which account for 89% of all stamp duty transactions — were 31% lower than in the previous quarter, and 14% lower than the same period a year ago.  

The report comes on the same day that the number of mortgage approvals fell to 48,700 in April, from 51,500 approvals in March, according to the Bank of England, showing that the approvals are slipping after two months of slim growth.  

The HMRC data also points out that higher rate stamp duty transactions, for additional properties, such as buy-to-let properties and second homes, fell 22% in the period compared to the same time last year, and showed a 25% fall on the previous three months.  

Total stamp duty receipts in the first quarter were 34% lower than in the previous quarter, and were 23% down on the first three months of last year.  

Residential property tax revenues in the period were 36% lower than the previous quarter, and 23% lower than the first three months of 2022.