Residential property transactions saw a significant increase in the lead-up to the planned changes to Stamp Duty Land Tax (SDLT) in April, according to the latest data from HMRC.
Seasonally adjusted figures showed that the number of residential transactions rose by 13% in February 2025, climbing from 95,790 in January to 108,250.
Meanwhile, non-seasonally adjusted residential transactions also experienced an increase of 10% over the same period.
Non-residential property transactions also saw notable growth.
Seasonally adjusted non-residential transactions rose by 8% in February compared to January, while non-seasonally adjusted figures were 4% higher.
Year-on-year, seasonally adjusted non-residential transactions increased by 1% compared to February 2024.
The surge in transactions suggests that buyers and investors are rushing to complete purchases before the Stamp Duty changes take effect from 1st April.
Reaction:
Andrew Lloyd, managing director at Search Acumen:
“February’s uptick in activity highlights the continued recovery of the UK real estate market, with the impending Stamp Duty deadline acting as a significant driver for increased transactions.
“This momentum was bolstered by a slight loosening of monetary conditions in February’s interest rate decision, even if the sector would have preferred for this trend to continue into this month.
“A healthy property market depends on translating growing investor confidence into a steady, sustained flow of transactions.
“Echoing the Chancellor’s Spring Statement on the need to modernise public services, transaction processes need to be ‘more efficient, more productive, and more focused on the user’.
“AI enabled tools can help modernise our current archaic procedures and ensure buyer/seller activity keeps up the pace throughout the year.”
Nathan Emerson, CEO of Propertymark:
“It is positive news that many consumers have adapted to current market conditions concerning typically higher interest rates and the impact this can have on a potential house move.
“House price growth has recently been reflected in this month’s UK House Price Index which was published this week and found the average house price increased by 4.9% year on year, which will provide comfort to existing homeowners.
“However, various governments across the UK must pay close attention to meeting their individual housing targets to help stabilise overall supply.
“Across the forthcoming years it will remain vital demand is met, as we see an ever-expanding population, which is expected to hit around 70 million people by the end of the decade which in the longer term as supply increases this will keep a balancing effect on prices increases.”
Nick Leeming, chairman of Jackson-Stops:
“The start of 2025 was turbo charged by the encroaching changes to Stamp Duty rates as buyers looked to take advantage of the savings on offer.
“This was particularly prevalent across London and the South East where buyers could make the most savings.
“Buyers are being presented with the greatest choice of properties on the market since the pandemic – this buzz in activity is already becoming apparent across the Jackson-Stops network, with a 70% rise in completions in February 2025 compared to a year ago.
“Similarly, buyer interest is also increasing, with 59% of branches reporting increased enquiries in the past month.
“That being said, it is important that sellers remain realistic with pricing, particularly as buyers will now be having to factor higher stamp duty costs into their overall moving budget.
“For those that have just narrowly missed out, having open communication between buyers, the agent and sellers can help to avoid lengthy negotiations and remove the risk of broken chains, at all stages of the process.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“These figures offer valuable insight into overall activity and are a key indicator as to how the market is likely to shape up over the next few months.
“The Stamp Duty concession has focused the minds of buyers, encouraging them to bring forward transactions.
“Higher borrowing costs and affordability pressures are still an issue and it will be interesting to see how the market reacts in the second quarter when the concession is no longer available.
“In areas where stock is limited, demand continues to be steady, particularly when it comes to the family home market with scope to work from home.
“Homes that are well priced and well presented are selling relatively quickly; while buyers may pause to assess financial implications, high-demand areas are likely to retain interest.”
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“Transaction numbers have picked up on the back of rate reductions and buyers trying to take advantage of Stamp Duty savings before they disappear at the end of this month.
“The market remains quite tough but business continues to pick up as the sun comes out and the weather starts to improve.
“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, particularly once the Stamp Duty concession has ended.”
Ryan McGrath, director of second charge mortgages at Pepper Money:
“With Stamp Duty changes coming into effect next week, the increase in residential property transactions suggests that prospective buyers have been doing all they can to take advantage of the financial saving.
“Yet with house prices rising and the Bank of England’s decision to hold interest rates, affordability continues to be an insurmountable barrier to moving for some.
“One consequence for buyers that have seen their lifestyle change is to improve the home they already have, unlocking the funds they need with a secured loan that doesn’t disrupt the rate on their current mortgage.
“With the secured loans market showing significant rates of growth in last 12 months, it’s clear that consumers are recognising the funding option they can provide.
“In addition to home renovations, secured loans are a strong choice to consider for people looking to settle personal tax bills, pay off school fees, or consolidate debts, with customers reducing outgoings by more than £600 a month on average by consolidating their debts with a secured loan.”
Richard Pike, chief sales and marketing officer at Phoebus Software:
“A peak in residential transactions in February was expected as buyers rushed to complete purchases ahead of the Stamp Duty deadline, mirroring trends seen before previous tax changes.
“While this has contributed to the uplift in today’s figures and is likely to be repeated in March data, we may see a slowdown in April as the market adjusts.
“Despite this, transaction levels remain significantly higher than this time last year, suggesting underlying demand is still strong.
“With interest rate cuts this year providing some support but broader economic pressures weighing on affordability, the coming months will be key in assessing whether market momentum can be sustained.”
Jason Tebb, president of OnTheMarket:
“The significant jump in transaction numbers indicates how important the Stamp Duty concession has been to the housing market, with buyers bringing forward purchases in order to beat the deadline.
“Two rate reductions in the second half of last year gave buyer and seller confidence a real boost. With one cut already this year – and more expected – there is cautious optimism.
“A number of lenders have recently reduced their mortgage pricing, which is helping ease affordability.
“Increased stock, as sellers try to take advantage of the spring market, means buyers have more choice than has been the case for a while.
“This is putting them in a stronger negotiating position and they remain price sensitive.”
