The UK residential property market has entered a period of relative calm following a stamp duty-driven surge in March, according to Landmark Information Group’s latest quarterly trends report.

While transaction volumes have slowed, underlying activity suggests the market is poised to respond quickly – if ongoing affordability issues can be addressed.

Landmark’s Q2 2025 Residential Property Trends Report, which tracks activity across England, Wales and Scotland, highlights a subdued quarter as the market adjusted to the expiry of the Stamp Duty Land Tax (SDLT) deadline at the end of Q1.

COMPLETIONS UP

A flurry of completions in March – up 79% year on year – drove a 30% increase in completions over Q1 compared to the same period in 2024. However, volumes in Q2 fell sharply, coming in 21% lower than the same period last year.

Despite this expected cooling, there are tentative signs of recovery. Sold Subject to Contract (SSTC) activity, though 13% lower year on year through April and May, returned to 2024 levels in June.

Similarly, search order volumes rose 2% across the quarter, while completions in June were tracking just 6% below their level from the previous year.

APPETITE TO MOVE

There is evidence of persistent appetite to move. Listing volumes for the quarter were up 5% on 2024, indicating that sellers remain active. Yet while mortgage rates have stabilised and some house price corrections have taken place, affordability remains a key drag on buyer activity. This imbalance continues to suppress offers and completions, further complicated by lengthy chains and procedural inefficiencies.

Simon Brown, chief executive of Landmark Information Group, said: “This isn’t a market in decline, it’s a market in waiting. Sellers are active and the peak of activity ahead of the stamp duty change indicates an industry ready to move quickly as demand grows.

“The missing piece is momentum – and that will only return when affordability, rates and house prices are in balance.”

Scotland, which has not seen any recent changes to its equivalent property transaction tax, presents a more stable picture. After an 11% fall in activity from March to April, Sold Subject to Missives (SSTM) volumes in May and June recovered to 2024 levels.

Completion volumes north of the border also proved more resilient, dropping just 6% between March and April – in contrast to the more pronounced dip seen elsewhere in the UK.

Brown added: “There’s opportunity here. With the right economic conditions and a continued focus on digitising the transaction process and addressing systemic inefficiencies, we can drive movement for the long-term and finally unlock the economic potential of the UK’s property market.”