Two bulletins made as we speak (Wednesday, 30 April) spotlight the impression of the Stamp Responsibility Land Tax vacation ending on the UK property market.
Firstly, HMRC’s Month-to-month Property Transactions commentary reveals a pointy rise in transactions throughout March, as patrons rushed to finish purchases earlier than the tax vacation ended. Based on the info, 177,370 property transactions came about in March 2025—a rise of 104% in comparison with March 2024 and 62% greater than in February 2025. Non-residential transactions additionally rose, reaching 11,200—up 12% year-on-year and 10% from the earlier month.
This surge is broadly attributed to patrons aiming to keep away from the upper tax prices reinstated on the finish of March.
In distinction, Nationwide’s April figures present indicators of cooling within the housing market. Annual home value development slowed to three.4% within the 12 months to April, down from 3.9% in March. Common home costs additionally dipped barely, from £271,316 in March to £270,752 in April—a month-to-month lower of 0.6%.
As anticipated, many sellers are adjusting their asking costs to mirror the extra tax burden now going through patrons.
Jason Tebb, President of OnTheMarket, feedback on the HMRC UK month-to-month property transactions commentary for March and the Nationwide Home Worth Index for April:
“The numerous uptick in transaction numbers underlines the significance of the stamp responsibility vacation as patrons introduced ahead purchases to beat the deadline. Nonetheless, there’s nonetheless loads of exercise available in the market now this incentive is now not obtainable.
“Different inducements – akin to rate of interest reductions – are much more important. Two quarter-point base-rate cuts within the second half of final yr, adopted by one to date this yr, have noticeably boosted sentiment and transactions. All eyes are on the Financial institution of England to see whether or not it’ll comply with up with one other reduce subsequent week – if it does, this can give added impetus in Might and June, which have the potential to be busy months for the market.
“Affordability stays an ongoing concern with charges nonetheless greater than many debtors have grown used to, mixed with the excessive price of residing and different pressures. Lenders have been trimming mortgage charges in latest days and additional motion from the Financial institution of England ought to allow this development to proceed, giving patrons who depend on mortgages elevated confidence to make their transfer.
“With extra property inventory available on the market as one would count on presently of yr, common home costs are being held in test, though after all native markets and even particular person properties can fluctuate significantly. Patrons on the entire stay delicate on value and eager to barter due to affordability pressures, so sellers ought to search recommendation from native brokers who actually perceive their market and value accordingly.”
In case you’re serious about shifting, go to onthemarket.com to view obtainable properties, get an instantaneous property analysis and even test how a lot you possibly can hire your property for!
