Buyers rush to complete deals ahead of Stamp Duty deadline
UK property transactions showed notable growth last month, with HM Revenue & Customs (HMRC) reporting an increase in both residential and non-residential activity compared to the previous year.
Provisional seasonally adjusted figures show that UK residential transactions reached 108,250 in February 2025, reflecting a 28% increase from February 2024 and a 13% rise from January 2025. The non-seasonally adjusted estimate for residential transactions stood at 90,430, marking a 24% year-on-year increase and 10% growth compared to the previous month.
Non-residential transactions saw more moderate gains. Seasonally adjusted estimates reported 10,090 transactions in February 2025, up 1% from February 2024 and 8% higher than January 2025. However, non-seasonally adjusted figures indicated a 2% year-on-year decline, with 8,800 transactions recorded, although this was still 4% higher than the previous month.
“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,” said Andrew Lloyd (pictured left), managing director at Search Acumen, commenting on the latest property transaction figures.
He noted that a slight easing in monetary conditions following February’s interest rate decision also contributed to this momentum, although further rate relief would have been preferable for the sector.
Lloyd emphasised the importance of maintaining this momentum, stressing that “a healthy property market depends on translating growing investor confidence into a steady, sustained flow of transactions.”
According Nick Leeming (pictured centre), chairman of Jackson-Stops, the early months of 2025 were clearly “turbo charged” by buyers rushing to secure deals before Stamp Duty changes. He observed that this trend was particularly pronounced in London and the South East, where buyers had the opportunity to maximise savings.
“Buyers are being presented with the greatest choice of properties on the market since the pandemic,” Leeming said, adding that Jackson-Stops branches saw a 70% rise in completions in February 2025 compared to a year earlier. Buyer interest is also on the rise, with 59% of branches reporting increased enquiries over the past month.
However, Leeming cautioned that sellers need to be realistic with pricing as buyers account for higher Stamp Duty costs. He stressed that open communication between buyers, agents, and sellers is essential to prevent broken chains and avoid prolonged negotiations.
For Amy Reynolds (pictured right), head of sales at Richmond-based estate agency Antony Roberts, the HMRC data provides a valuable indicator of market trends for the coming months.
“The Stamp Duty concession has focused the minds of buyers, encouraging them to bring forward transactions,” she said. “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.”
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