Stamp duty receipts collected by the Treasury from housing transactions increased by 27% between July and September, when compared with the previous three-month period as lockdown restrictions eased, the latest figures show.

Some £1.9bn was raised from stamp duty in the third quarter of the year, but this total was down by 40% compared with the third quarter of 2019, when stamp duty receipts totalled £3.1bn, according to figures released by HM Revenue and Customs.

HMRC said residential property transactions in the third quarter of 2020 were 72% higher than in the previous three months and 18% lower than in the third quarter of 2019.

Housing market activity and property prices have increased thanks to higher demand, which has been fuelled in part by the stamp duty holiday.

Office for National Statistics data showed last week that the average UK house price reached a record high of £245,000 in September, after jumping by 4.7% over the year.

Although the stamp duty threshold has been raised, meaning fewer properties are being caught by the tax, high levels of buyer activity has maintained a healthy stream of receipts for the government.