HOUSE sales around Bradford have slumped by up to 80 per cent due to  extra stamp duty charges, according to local estate agency boss.

James Watts, a director of Robert Watts, said the new three per cent stamp duty rate on investment properties introduced by former Chancellor George Osborne from April had decimated the local buy-to-let market.

But Mr Watts, whose firm has branches in Cleckheaton,Wibsey and Idle and three property letting offices locally, said he expects the local housing market to recover once people have become accustomed to the UK’s exit from the EU.

“To be honest, it’s probably a bit early to blame all the fall in sales on Brexit as it’s only three weeks since the vote. But people are definitely being cautious about buying and selling.

“The current trend will not help overcome the shortage of homes on the market and we continues to see a widening gap between supply and demand. Now is the time to sell because there are buyers out there and the lowest level of homes on the market for ten years,”said James.

The new stamp duty rate of three per cent on properties over £40,000 had been a major blow to buy-to-let sales in Bradford’s comparatively low price property market.

“It was a really bad move and has hit buy-to-let business in this area harder than many others,” James added.

His comments followed the publication of the latest residential housing market survey from the Royal Institution of Chartered Surveyors.

This showed that uncertainty fuelled by the EU Referendum result and the impact of the higher stamp duty on investment property purchases had hit activity in Yorkshire where only five per cent of chartered surveyors reported increase in interest from potential buyers last month while 36 per cent of regional agents saw a drop in sales with the trend set to continue over the next three months. Prices are also expected to fall further.

Simon Rubinsohn, RICS chief economist, said the sales fall was unsurprising as events such as elections unsettled the market. Even without the Brexit vote house sales would probably have slowed during the second quarter after a rush by buy to let investors to secure deals ahead of the tax changes.