Property sales surged in March 2025 as buyers rushed to complete purchases before the temporary stamp duty land tax (SDLT) relief ended. HMRC recorded 177,370 completed transactions – more than double the 86,810 sales from March 2024, up 104%.

This jump was driven almost entirely by first-time buyers hurrying to beat the return of the lower SDLT nil-rate threshold. Until 31 March, first-time buyers paid no SDLT on properties worth up to £250,000. From April, that threshold dropped to £125,000, adding up to £2,500 to many purchases. The average SDLT bill for a first-time buyer is now around £6,250.

February already saw a sharp increase in tax receipts from property transactions, with £300 million collected – a 20% year-on-year rise based on 109,700 transactions. However, this boost is not expected to last.

Despite the spike in completions, Nationwide’s latest figures show a 0.6% fall in property prices during the first weeks of April. The broader economic picture remains weak, with slow growth and falling consumer confidence.

Concerns over job security are mounting, especially with the rise in employer National Insurance contributions, which could limit wage growth and reduce hiring. Job vacancies have already declined, suggesting pressure across the labour market.

The rise in sales is a short-term reaction to a tax change, not a sign of market recovery. Activity is expected to drop as affordability pressures weigh on potential buyers.

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