UK property transactions soared in March 2025, as homebuyers and investors rushed to complete deals before Stamp Duty Land Tax (SDLT) thresholds were lowered at the start of April.

According to HM Revenue & Customs, the seasonally adjusted number of UK residential property transactions hit 177,370 in March, more than double the level seen in March 2024 – a striking 104% year-on-year increase. Compared to February 2025, the figure rose 62%, highlighting the significant pull-forward in activity.

The sharp increase in transactions is widely attributed to the return of SDLT thresholds to pre-pandemic levels.

From 1 April 2025, the nil-rate threshold for all buyers dropped from £250,000 back to £125,000.

FIRST-TIME BUYERS

First-time buyers also saw their threshold reduced from £425,000 to £300,000. The looming change appears to have driven a surge in completions during March, as buyers sought to capitalise on the higher allowances before they expired.

Non-seasonally adjusted figures paint a similarly robust picture, with residential transactions up 80% on February and 89% on the year – the third-largest monthly rise in non-seasonally adjusted data since records began, behind only spikes seen in March 2016 and June 2021, both of which followed other SDLT changes.

Commercial property also saw a lift. Seasonally adjusted non-residential transactions reached 11,200 in March, up 10% on the month and 12% on the year. Non-seasonally adjusted commercial deals climbed even further up – 37% on February.

TOUGH BUT BUSY

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Transaction numbers have picked up on the back of rate reductions and buyers trying to take advantage of stamp duty savings before they disappeared at the end of March.

“The market remains quite tough but busy as the sun comes out and the weather improves.

“Rate reductions are a great way of boosting confidence and activity in the housing market, as we saw with the base rate cuts in the second half of last year and the reduction earlier this year.

“Further reductions from the Bank of England will help improve confidence and affordability, and give the market some impetus now that the stamp duty concession has ended.”

SENSITIVE TO TAX POLICY

Mark Tosetti, CEO of CAL (part of Movera), said: “The sharp rise in residential transactions in March reflects a predictable response to the stamp duty threshold changes coming into effect in April.

“Buyers moved quickly to complete purchases while the higher nil-rate thresholds were still in place, resulting in one of the biggest month-on-month jumps we’ve seen outside of previous policy deadlines.

“The scale of the increase – over 100% year-on-year and 62% up on February – shows just how sensitive the market remains to tax policy.

“This was not limited to residential transactions either; the uplift in non-residential activity suggests broader confidence in the market when timelines are clear and incentives are strong.

“As with past stamp duty changes, at times the pressure that can be seen across different areas of the property sector was intense.”

HOMEOWNER BOOST

Kevin Roberts, Managing Director at L&G’s Mortgage Services business, said: “Today’s figures suggest the market is in great health.

“Competitive rates and the highest availability of low-deposit mortgages for 17 years are giving aspiring homeowners a real boost, and we encourage buyers to seek professional mortgage advice to take advantage of the current market and land the best deal for them.

“With further base rate cuts potentially on the horizon, affordability could improve even more in the coming months.”

EXTRA MOTIVATION

Phil Lawford, National account manager at Saffron for Intermediaries, said: “The stamp duty deadline at the end of March gave buyers a little extra motivation to get deals over the line, which is a key reason for the uptick in transactions.

“Although there were backlogs and delays, brokers worked around the clock to support buyers who were determined to secure their deals before the new rules took effect – helping to drive market activity.

“As we move closer to summer, usually a strong season for property transactions, the market’s in a strong spot.

“Mortgage rates have dropped below 4%, improving affordability and giving first-time buyers more chances to step onto the ladder. For anyone considering a purchase, speaking with a mortgage adviser can help ensure they secure the best deal and move forward with confidence.”

SIGN OF STABILITY

Chris Little, Chief Revenue Officer, finova, said: “Today’s data is welcome news for the housing market and another sign of stability despite global economic turbulence.

“Buyer demand has eased slightly, resulting from activity being brought forward as buyers rushed to complete before the changes to stamp duty thresholds.

“This pattern is typical after major stamp duty deadlines, but crucially, it hasn’t dented transaction levels and speaks to the underlying strength of the market.

“Looking ahead, the outlook for the second half of 2025 remains positive. Markets have already priced in further interest rate cuts, and lenders are starting to factor these expectations into more competitive sub 4% deals.

“Innovation from mortgage lenders will be critical to driving activity, too. Revisions to affordability assessments could unlock new buying opportunities, giving more people the means to get on the housing ladder and supporting transactions into the second half of the year.”

FURTHER RATE CUTS

Richard Pike, chief sales and marketing officer at Phoebus Software said: “March saw a notable rise in residential transactions, according to the latest HMRC Property Transactions data, largely driven by buyers aiming to complete before the stamp duty changes took effect.

“This kind of activity is typical in the lead-up to policy shifts, and while it may give a temporary lift to the numbers, we could see a cooling off-period in the coming months as the market settles.

“Looking ahead, expectations of further rate cuts from the Bank of England later this year could offer further support to the market.

“Some economists are forecasting a cut as early as May, which may boost buyer confidence. However, this sits against a backdrop of continued cost-of-living pressures, meaning affordability will remain a key constraint. We’re also yet to feel the full effect of the US tariffs or indirect tax increases so the long-term picture remains unclear.”

STAMP DUTY DISCOUNT

Tomer Aboody, director of specialist lender MT Finance, says: “Higher transaction volumes were down to buyers bringing moves forward in order to take advantage of the stamp duty discount.

“Overall, it has been a positive few months for the housing market with transaction levels improving.

“As buyers look to the Bank of England for further rate reductions, any assistance here will help the upwards trajectory in transaction numbers as the year progresses.”