The UK housing market experienced exceptional home sales during the month of March this year due to the impending sales tax hike which took effect on April 1^st. Following the month of March, sales took a nose dive and reached levels not seen in years. Buy to let properties were hit hardest as only 4,200 homes sold during the month of April. This contrasts with the boom of almost 30,000 homes which were sold during the month of March this year.

The average number of buy to let homes sold during the month was around 10,000 for the previous year. This makes the total of 4,200 the lowest month on record in the three years leading to April, according to the Council of Mortgage Lenders.

Due to the large number of homes sold during the month of March, other types of home sales were greatly affected. Even though homes other than buy to let were not subjected to the new tax, they also took a major hit.

During the month of March, a 15% decline in home sales year on year was posted totaling just more than 22,000. This figure also had historical significance as it was the lowest total in three years for home movers, according to the CML.

Even though other sectors of home sales were impacted, new home buyers grasping a rung on the property ladder for the first time is up. Those on the ladder now compared with last year is higher by 7%.

Paul Smee of the CML commented on the latest house sales to surface, saying: “There is a sense of calm after the storm this month, as lending eased back, following the significant rises in activity in March as borrowers looked to beat the second property stamp duty deadline.

“We expect the market to take several months to return to its previous levels after the lending surge.”