HMRC Data Reveals Significant Decline in Transactions – Industry Response – TNT

The number of UK property transactions fell sharply in April 2025, according to provisional figures from HM Revenue and Customs (HMRC).

For residential properties, the seasonally adjusted figure was 64,680 transactions, representing a 64% drop compared to March 2025 and a 28% decline from April 2024. On a non-seasonally adjusted basis, residential transactions fell to 55,970, down 66% month-on-month and 28% year-on-year.

HMRC said the steep decline in residential transactions in April follows a spike in March, likely due to activity being brought forward ahead of the stamp duty land tax (SDLT) threshold reductions effective from 1 April 2025. 

The number of residential property transactions in April 2025 was the second lowest for any April since 2016, with only April 2020 recording fewer completions.

Non-residential property transactions also recorded declines. On a seasonally adjusted basis, non-residential transactions were estimated at 9,410 in April, down 16% from March 2025 and 9% compared to April 2024. The non-seasonally adjusted figure was 9,540 transactions, reflecting a 21% drop from March and a 9% fall year-on-year.

Nathan Emerson, CEO of Propertymark, commented that the figures “demonstrate the challenging journey many who approached the buying and selling process were experiencing just prior to the Stamp Duty threshold changes before April”.

He said: “These challenges have escalated to this day thanks to a delicate global economy, inflation currently sitting at 3.5%, whereas that inflation figure was 2.6% during the timeframe of [the latest] figures, and the Bank of England rightly displaying caution regarding any lowering of the base rate.

“These factors added together appear to have dented the confidence of many potential home movers. 

Emerson added: “The summer months tend to be a busy time for the housing market, and with recent reports suggesting that mortgage rates could creep back upwards, the Bank of England will have its work cut out to maintain a balanced pathway forward that keeps inflation in check while delivering consumer confidence for the housing sector.” 

More reaction

Tom Bill, head of UK residential research at Knight Frank, said: 

“An April slump in transactions was expected as stamp duty rose for everyone, with first-time buyers and second home owners being particularly affected. The rollercoaster of the last two months mirrors what happened in 2016, when the second home surcharge was first introduced. There will be a rebound in coming months, which happened nine years ago despite the Brexit vote. 

“However, mortgage rates have since reverted to normal and there is a risk that inflation and the government’s shrinking financial headroom will keep upwards pressure on borrowing costs and demand in check. Supply also outweighs demand and asking prices need to reflect the fact it is very much a buyers’ market this spring.”

Aneisha Beveridge, head of research at Hamptons, said: 

“While it’s normal to see an uptick in transactions in the final month of a stamp duty holiday, and subsequently a hangover in the following month, this is the largest fall in transactions after a SDLT holiday ended since at least 2009. For example, completions fell by 57% in the month following the introduction of the 3% stamp duty surcharge in April 2016.

“That said, lower mortgage rates have offset the rise in most buyers’ stamp duty bills in recent months. And this should support sales over the year ahead.  

“We expect there to be around 1.2 million completions across Great Britain this year, up from 1,076,530 in 2024.”

Adam Oldfield, CEO at Phoebus Software, said: 

“A drop in transactions this month was always on the cards. March saw a significant spike as buyers rushed to beat the stamp duty deadline (more than double the same time last year) and with that temporary incentive now behind us, a slowdown in April was inevitable.

“Looking ahead, there are a few key factors we’ll be keeping a close eye on. Interest rates remain front of mind. The Bank of England recently cut the base rate to 4.25%, and there’s growing expectation that we could see it fall further to 3.75% by the end of the year. If that materialises, it could go some way to easing mortgage affordability pressures, especially for first-time buyers.

“That said, inflation has ticked up again, reaching 3.5% in April. Higher utility bills and increased taxation continue to squeeze household budgets, and that will likely have a knock-on effect on confidence in the housing market.