UK property transactions nosedived in April, as changes to Stamp Duty Land Tax (SDLT) triggered the sharpest monthly drop on record.
According to provisional HMRC data, just 64,680 seasonally adjusted residential property transactions were recorded in April 2025 – down 64% on March’s total of 177,440, and 28% below April 2024.
The non-seasonally adjusted figure fell even more steeply, plunging 66% month-on-month to 55,970 – the largest drop since records began.
The collapse follows a rush to complete purchases in March, ahead of significant SDLT threshold reductions. From 1 April, the nil-rate band reverted from £250,000 to £125,000 in England and Northern Ireland. First-time buyers also saw their exemption threshold cut from £425,000 to £300,000.
Analysts say the April slump is a direct result of transactions being pulled forward to avoid higher tax bills.
Commercial property was also hit, though less dramatically. Seasonally adjusted non-residential transactions slipped 16% on the month to 9,410, down 9% year-on-year. The non-seasonally adjusted figure fell 21% from March to 9,540.
ENCOURAGING ACTIVITY
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Transaction numbers have dipped since it became too late to take advantage of the stamp duty concession but the latest base rate cut is encouraging activity.
“Base rate is expected to fall further from its current level although the pace and size of cuts may be more gradual than the markets thought only a few weeks ago as a result of higher inflation and the wider economic picture.
“In the meantime, mortgage rates are lower than they have been in a while. Those looking to purchase or refinance anytime soon would be sensible to secure the best rate they can now. Should rates continue to rise before they need to exchange or complete, they can pat themselves on the back for securing a good rate. Should they fall again, then they can look to secure a new, lower product when required.”
NO SURPRISE
Clare Beardmore, director of club and distribution at L&G’s Mortgage Services business, said: This month’s fall in transactions is not a surprise. In March, buyers raced to meet the stamp duty threshold deadline, creating the ideal conditions for a month of historically frenetic activity.
“April was always unlikely to match these peaks. Nevertheless, the overall mood in the market is still upbeat. More properties are coming to market, and mounting competition between lenders is driving a marked increase in the availability of low-deposit mortgage options – our broker data shows that demand for 91–95% LTV products surged by 60% in Q1.
LONG-TERM SHIFT
Simon Webb, managing director of capital markets and finance at LiveMore, said: “While activity may have dipped this month, it’s important not to lose sight of the longer-term shift we’re seeing in the property market – particularly among older homeowners.
“We’re continuing to see strong interest from people in their 50s, 60s and beyond who are looking to move, refinance or access equity to support their families.
“This segment of the market is often less reactive to short-term economic fluctuations and more focused on lifestyle changes, such as downsizing, relocating or adapting to retirement.
“The outlook remains encouraging. With interest rates expected to fall further this year, confidence is gradually returning and we believe the later life lending market will continue to grow in importance – not just as a source of housing activity, but as a key enabler of financial wellbeing in later life.
“The challenge now is to ensure that lending criteria, product innovation and advice services continue to keep pace with changing customer needs.”
REDUCE STAMP DUTY
Tomer Aboody, director of specialist lender MT Finance, says: “If further proof were needed as to how much stamp duty impacts the property market, the latest HMRC figures illustrate this without a shadow of a doubt.
“The drop in transaction numbers compared to March, where buyers were rushing to complete their purchases, is further proof for any government which wants to help stimulate the property market that it must reduce stamp duty.
“The property market is one of the biggest stimulators for the economy as a whole and therefore a healthy market with plenty of transactions is a must for any government pushing a growth agenda.”
REASONS TO BE CHEERFUL
Phil Lawford, national account manager, Saffron for Intermediaries, said: “A slight dip in transactions during April is not unexpected as the market adjusted to the recent stamp duty changes.
“Some buyers may have paused to reassess their position, particularly given the backlog to complete purchases ahead of the March deadline.
“Despite the slower numbers, there are plenty of reasons to be optimistic. We’re heading into the typically busy summer period, and government reforms to support housebuilders offer a fresh hope for increasing supply and revitalising the market – making it simpler and quicker for SMEs to build homes – these reforms improve choice and affordability for buyers.
“For those considering their next step, consulting a mortgage adviser can help make the most of this changing landscape.”
RATES AND INFLATION
Adam Oldfield, CEO at Phoebus Software, said: “There are a few key factors we’ll be keeping a close eye on. Interest rates remain front of mind – the Bank of England recently cut the base rate to 4.25%, and there’s growing expectation that we could see it fall further to 3.75% by the end of the year.
“If that materialises, it could go some way to easing mortgage affordability pressures, especially for first-time buyers.
“That said, inflation has ticked up again, reaching 3.5% in April. Higher utility bills and increased taxation continue to squeeze household budgets, and that will likely have a knock-on effect on confidence in the housing market.
“On top of that, the supply side remains an ongoing concern. The government looks set to miss its target of 1.5 million new homes by 2029, potentially falling short by as many as 500,000. That shortfall could keep upward pressure on prices, even if demand softens in the short term.
“While a post-March dip was expected, we’re still seeing resilience in the market. The next few months will be shaped by how these macroeconomic pressures evolve – and how quickly both buyers and lenders can adjust to the shifting landscape.”
INFLECTION POINT APPROACHING
Andrew Lloyd, managing director at Search Acumen, said: “Across the market we are still seeing a strong appetite for deal flow and a demand for bricks and mortar that will continue to resonate throughout the upcoming months.
“Residential is only one part of the full picture. In commercial property, a combination of rental growth, yield impact turning positive, and looser credit constraints contributed to an impressive performance led by the retail sector.
“However, as we begin to feel the shockwaves of recent global economic headwinds, the next few months will be an inflection point for market confidence.
“Getting transactions over the line is a complex and at times fragile process. In times of uncertainty, buyers should have the confidence that real estate lawyers have the right digital tools to ensure transactions can be handled efficiently and smoothly.”
