New figures from HM Revenue & Customs (HMRC) show a dramatic decline in residential property sales across England, with Northampton experiencing one of the steepest drops. Transactions in the East Midlands town fell by 13% year-on-year in the three months to November 2023.
Tax Reforms Chill the Market
The slump follows significant changes to property taxation, including reductions in capital gains tax allowances and stamp duty relief. Tony Hall, head of research at PropertyData, warns: "These figures confirm our worst fears - the government's tax policies are actively discouraging home moves."
Northampton Hit Hardest
While the national average decline stood at 9%, Northampton's 13% decrease puts it among the worst affected areas. Local estate agents report particular struggles in the £250,000-£400,000 price bracket, traditionally popular with families.
Broader Market Uncertainty
Economic factors including high mortgage rates and inflation have compounded the problem. The Bank of England's successive interest rate hikes have left many potential buyers unable to secure affordable financing.
Industry analysts suggest the downturn may continue well into 2024, with transaction volumes unlikely to recover until at least the second quarter.
