Property gross sales fall 41% in a YEAR as consumers lose tax break and Iran struggle uncertainty takes toll

The number of homes bought and sold plummeted 41 per cent last month compared to the year before, official data has revealed. 

There were 104,070 homes sold in Britain in March 2026 compared to 176,390 just 12 months earlier, HMRC property transaction data shows.

The housing market has been suffering since the beginning of the conflict in Iran, as mortgage rates have increased and households put off moves due to concerns about the economy. 

However, the figures from March 2025 were also unusually high. This was the last month buyers could benefit from a stamp duty discount that had been in place since 2022. 

After that, it reverted to its previous level, meaning some buyers would need to pay thousands more in taxes. 

Compared to the previous month, property sales in March 2026 were up by 1 per cent. 

Down: Home sales fell in March compared to the year before, according to HMRC stats

Nathan Emerson, chief executive at estate agent membership body Propertymark, said: ‘With current uncertainty globally, it sadly comes as little shock that we are seeing a slowing year-on-year in the number of completed property transactions within the marketplace,’ he said. 

‘Although there is positive news to be seen when comparing the figures directly against last month, it is important to acknowledge the many challenges ahead.’

House prices rose by 0.8 per cent in the year to March, according to the latest figures from Halifax, following an 0.3 per cent monthly rise in February. 

And the number of homes on the market sits at an eleven-year high at the start of the spring selling season according to Rightmove, making it a clear buyers’ market. 

The Bank of England is set to hold interest rates at 3.75 per cent today as it attempts to ward off an inflation spike caused by the war in Iran, reducing the chances of major mortgage rate reductions. 

However, some lenders have been making small reductions in the last week or so as they adjust to the new environment. 

Some property experts believe house sales could pick up too, as households also come to terms with the economic impact of the Iran war. 

Amy Reynolds, head of sales at Richmond estate agent Antony Roberts, said: ‘On the ground, we saw some softening in initial viewing levels in March as people took stock of the situation in the Middle East and what impact this might have on borrowing costs. 

‘However, since then, things have picked up and the past week has been very busy, with a strong level of viewings and serious offers coming through.’

Emerson warned that it was taking longer for house sales to go through, however, because of the cautious environment and the fragility of property chains.  

‘Propertymark’s sector data recently demonstrated a peak in the number of housing transactions taking in excess of 17 weeks to complete. With current uncertainty within the economy, there is potential for this figure to trend further upwards,’ Emerson added.