Landmark’s newly released Q1 2025 Residential Property Trends report reveals signs of a resilient market and a stable transaction pipeline emerging following the much-anticipated spike in completions that took place ahead of the Stamp Duty Land Tax (SDLT) reversal deadline.
As expected, the SDLT changes created a spike in activity in Q1 2025. Completions rose by 30% over the quarter, with a 71% year-on-year surge in March alone as buyers rushed to complete ahead of the deadline.
However, beyond this anticipated surge, underlying indicators point to a more resilient property market heading into Q2:
- Mortgage valuation volumes in Q1 2025 rose by 8% compared to Q2 2024, which itself was 9% above 2023 – driven by greater interest rate stability, particularly in five-year fixed-rate deals.
- Sold Subject to Contract (SSTC) activity between February and March was up 4.4% month-on-month showing new activity entering the transaction pipeline despite the higher SDLT charges.
- Search volumes, up 23% year-on-year in January, remained at baseline levels in February and March.
These trends suggest that transaction pipeline activity is steady even after the SDLT deadline has passed.
That said, affordability remains a critical constraint. While property listings remained high in Q1 2025, finishing 1% up on Q1 2024, reflecting a buyer’s market, demand still trailed behind likely due to challenges for consumers in accessing the necessary finance to meet asking prices.
The report also warns that broader global economic uncertainty, including the threat of new trade tariffs and potential interest rate fluctuations, could yet destabilise progress, potentially impacting lending conditions and buyer affordability.
Simon Brown, CEO, Landmark Information Group,says: “This quarter’s data paints a picture of a market that remains fundamentally stable. The SDLT spike was expected, but beyond that we’re seeing meaningful signs of resilience from the market.
“Affordability is still a challenge, but buyers remain engaged and steady mortgage conditions are improving access to finance. The opportunity now is to support this progress by making the transaction process faster, more certain and connected.
“With the right focus, the property market can play a central role in supporting the UK’s wider economic growth. At Landmark, we’ll continue providing the insight and digital innovation the industry needs to deliver that potential.”
Key findings from the report:
- In England and Wales, listing volumes were up 1% in Q1 ‘25 vs Q1 ‘24.
- In England and Wales, sold subject to contract (SSTC) volumes in Q1 ‘25 were down 9% when compared to Q1 ‘24 volumes.
- In England and Wales, search order volumes in Q1 2025 were up 8% vs Q1 2024 levels.
- In England and Wales, completions were up 30% across Q1 ’25 when compared to Q1 ‘24, but this was led by abnormally high completion rates in March at 71% compared to the previous year, as property professionals focused on completing outstanding transactions before the SDLT deadline.
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