Two announcements made today (Wednesday, 30 April) highlight the impact of the Stamp Duty Land Tax holiday ending on the UK property market.
Firstly, HMRC’s Monthly Property Transactions commentary shows a sharp rise in transactions during March, as buyers rushed to complete purchases before the tax holiday ended. According to the data, 177,370 property transactions took place in March 2025—an increase of 104% compared to March 2024 and 62% higher than in February 2025. Non-residential transactions also rose, reaching 11,200—up 12% year-on-year and 10% from the previous month.
This surge is widely attributed to buyers aiming to avoid the higher tax costs reinstated at the end of March.
In contrast, Nationwide’s April figures show signs of cooling in the housing market. Annual house price growth slowed to 3.4% in the 12 months to April, down from 3.9% in March. Average house prices also dipped slightly, from £271,316 in March to £270,752 in April—a monthly decrease of 0.6%.
As anticipated, many sellers are adjusting their asking prices to reflect the additional tax burden now facing buyers.
Jason Tebb, President of OnTheMarket, comments on the HMRC UK monthly property transactions commentary for March and the Nationwide House Price Index for April:
“The significant uptick in transaction numbers underlines the importance of the stamp duty holiday as buyers brought forward purchases to beat the deadline. However, there is still plenty of activity in the market now this incentive is no longer available.
“Other inducements – such as interest rate reductions – are even more essential. Two quarter-point base-rate cuts in the second half of last year, followed by one so far this year, have noticeably boosted sentiment and transactions. All eyes are on the Bank of England to see whether it will follow up with another cut next week – if it does, this will give added impetus in May and June, which have the potential to be busy months for the market.
“Affordability remains an ongoing concern with rates still higher than many borrowers have grown used to, combined with the high cost of living and other pressures. Lenders have been trimming mortgage rates in recent days and further action from the Bank of England should enable this trend to continue, giving buyers who rely on mortgages increased confidence to make their move.
“With more property stock on the market as one would expect at this time of year, average house prices are being held in check, although of course local markets and even individual properties can vary considerably. Buyers on the whole remain sensitive on price and keen to negotiate because of affordability pressures, so sellers should seek advice from local agents who really understand their market and price accordingly.”
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