The housing market saw a rise in transactions in March 2025, as buyers rushed to complete purchases ahead of changes to the Stamp Duty Land Tax (SDLT) thresholds that took effect on 1st April, data from HMRC has revealed.
According to the data, seasonally adjusted residential property transactions rose by 62% from 109,700 in February 2025 to 177,370 in March 2025.
The substantial increase is widely attributed to the anticipated reduction in SDLT thresholds.
As of 1st April, the nil-rate band for all buyers dropped from £250,000 to £125,000, while for first-time buyers, the threshold was reduced from £425,000 to £300,000.
Industry analysts suggested that the March surge was largely driven by homebuyers and investors seeking to complete transactions before these more generous thresholds were scaled back.
The incentive to avoid higher tax bills prompted an unusually high volume of market activity.
Non-residential property transactions also experienced an upswing.
Seasonally adjusted figures show a 10% month-on-month rise, while non-seasonally adjusted non-residential transactions jumped 37% compared to February.
Meanwhile, non-seasonally adjusted residential transactions soared by 80% in March, marking the third-largest monthly increase since records began.
Only March 2016 – preceding the introduction of a 3% surcharge on second homes – and June 2021, following the end of a temporary SDLT holiday, recorded larger spikes.
Year-on-year comparisons also highlight sustained growth in the non-residential sector, with seasonally adjusted non-residential transactions up 12% compared to March 2024.
Reaction:
Nathan Emerson, CEO of Propertymark:
“The rush to avoid Stamp Duty threshold changes across England and Northern Ireland spurred many people to prioritise their purchase before the recent 1st April 2025 deadline.
“However, it will now be key to see sustained momentum in the sector during the traditionally busy spring and summer months.
“As the housing market starts to follow the usual buoyant seasonal trends, we are likely to see an influx of properties for sale for those in a prime position to find their next ideal home.
“Recent data demonstrates a growing array of two-year fixed-rate mortgages delivering more affordability that only 12 months previous, giving consumers more choice and greater financial flexibility.
“With many mortgage rates starting to dip down again, there is still yet some distance to go before they are still generally lower than they were prior to 2022.
“Should inflation decrease to 2% or less, it would give the Bank of England potentially far more flexibility to consider further interest rate cuts, which would typically result a far wider range of more affordable mortgage products in the medium to long term.”
Andrew Lloyd, managing director at Search Acumen:
“The impressive flurry in residential buyer activity as we reached the end of the Stamp Duty holiday was mirrored by a similarly strong performance in the commercial real estate sector.
“Investors were drawn to shopping centres and warehouses as retail emerged as the leading sector delivering strong returns.
“While earnings growth and steady demand for commercial property point towards a promising summer, transaction processes remain plagued by time-consuming inefficiencies that risk stalling market activity at a critical moment.
“The evidence is clear. Embracing digital tools to modernise current antiquated procedures will help unlock the full potential of the market.”
Neil Knight, divisional director at Spicerhaart Part Exchange and Group Clients:
“Another monthly increase in transactions was to be expected as buyers hurried to beat the Stamp Duty deadline.
“A key benefactor has been the new build sector as it remained one of the few places where the tight timescales were still achievable.
“What happens next remains the elephant in the room as the increased cost to buy impacts affordability and inevitably hits transaction numbers.
“Increasing competition on mortgage rates will certainly help to counteract this, as will further movement on the base rate.
“There’s no question though that builders and developers will still need to respond to this change in the market and explore other avenues and opportunities to stimulate demand and support buyers – in lieu of government support.
“Alongside deposit boosts or equity schemes, we are already seeing increasing enquiries coming through part-exchange or assisted move propositions, helping those already in the market to buy and sell in an efficient and cost-effective way.”
Richard Pike, chief sales and marketing officer at Phoebus Software:
“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.”
Maria Harris, chair of the Open Property Data Association:
“Residential transactions have risen yet again which is not surprising given the rush to complete transactions ahead of the stamp duty deadline. With the Bank of England hinting at further rate cuts this quarter, we could see more stability in mortgage pricing which could help to maintain this momentum further into the year.
“We know that homebuying transaction volumes are closely aligned with consumer confidence, yet the home buying and selling process remains a frustrating one for consumers and the industry, often resulting in a poor experience for everyone.
“Simplifying and improving transparency in property transactions, for buyers, sellers, and professionals alike, has never been more urgent. But to achieve this, we need government and industry to deliver accessible, trustable, and secure data.
“Digitising property information and enabling it to be shared through open standards is a critical step toward the transformation the industry so badly needs.”
Chris Little, chief revenue officer, finova:
“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.”
Nick Leeming, chairman of Jackson-Stops:
“Buyer demand surged in March, driving completions forward ahead of new Stamp Duty rates taking effect, distorting the market somewhat. As we saw during the 2020 Stamp Duty Holiday, fixed deadlines can profoundly shape market dynamics and influence buyer and seller behaviours.
“Optimism remains high that this momentum will flow into the Spring Bounce, as buyers resume their searches ahead of summer and the new school year. Across the Jackson-Stops network, annually we have seen growth in completions, new instructions and new applicants.
“Key markets such as Blandford, Cranbrook, Midhurst, Reigate and Woburn saw over ten new applicants per listing in March. This reflects the enduring draw of areas with outstanding schools, excellent amenities and strong city transport links – ideal for buyers looking to strike the balance between returning to the office and preserving slower paced weekends.”
Phil Lawford, national account manager at Saffron for Intermediaries:
“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.”
