New data show that residential transactions across England and Wales dropped by 18.4% over the twelve months ending March 2026. The downturn comes after the temporary Stamp Duty thresholds were removed in April 2025, raising the initial tax charge for numerous purchasers.
These figures are released while the Bank of England left its Bank Rate steady at 3.75%. In the Monetary Policy Committee, six members supported maintaining the rate, and three voted for raising it to 4%.
Consumer price growth climbed to 3.1% in August, with the Bank forecasting additional upward pressure. Officials noted that upside risks to inflation have grown, mainly because of raised and erratic energy costs. Mortgage expenses continue to stay raised.
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According to the Bank, average rates on two-year fixed-rate mortgages have increased by roughly 0.95 percentage points since the recent Middle East conflict started. Higher transaction taxes and borrowing costs present an additional hurdle for estate agents and market activity.
Jonathan Stinton, who leads intermediary relationships at Coventry for intermediaries, stated that Stamp Duty is shaping home-moving choices. He observed that an almost 20% decline in property sales shows the growing impact of Stamp Duty on buyers’ relocation decisions.
The BoE’s choice to leave the Bank Rate unchanged could influence the housing market, as could its projection of further inflationary pressure. Together with variables like energy costs, these elements will be closely monitored by policymakers and industry observers.
