A chill on transactions is expected after a spike in activity.

HMRC’s latest statistics show changes to Stamp Duty Land Tax (SDLT) in April caused the UK property market to have an unprecedented surge in transactions during March, say leading audit, tax and business advisory firm, Blick Rothenberg.

Tom Goddard, a Senior Associate at the firm, said: “The statistics show 77,480 more residential property transactions valued over £40,000 in March 2025 than in the same month the previous year. The surge was caused by people rushing to complete transactions before the tightening of the SDLT thresholds and rates, which kicked in from 1st April 2025. As a result, SDLT receipts soared, with the Treasury collecting £349 million more in March 2025 than in March 2024.”

He added: “The reforms were designed to increase revenue and address concerns that SDLT had become overly generous at the lower end of the market. Buyers eager to avoid the additional SDLT burden rushed to complete purchases before the deadline, fuelling a short-term boom. Sellers, meanwhile, took advantage of the demand spike, which led to a short-term property premium.”

Tom said: “The April SDLT revision changed the 0% threshold (nil rate band) for residential property purchases from £250,000 to £125,000. First-time buyers have also seen the threshold at which SDLT kicks in for them reduce (at 5%) from £425,000 to £300,000.”

He added: “Because of this, we will likely see a chilling effect on both transaction volumes and house prices in next month’s statistics. The rise of the SDLT is likely to deter both first-time buyers and those looking to upsize, particularly in areas where price points are just above the new SDLT thresholds. As transaction volumes fall, downward pressure on prices could intensify.”

Tom said: “Unless other housing or tax policy measures are introduced, we could see a pronounced cooling in the UK property market across all price points, as although the change in SDLT rates primarily impacts lower-price properties, transactions in this sector of the market are an integral foundation for sales in all other price segments.”

He added: “But the Treasury may welcome the increase in SDLT receipts, even if it is temporary, as it continues to grapple with broader fiscal pressures, and given that the Government’s borrowing requirements for FY25 were provisionally £11bn higher than originally budgeted for by the Office of Budget Responsibility.”

Latest Changes to Stamp Duty Land Tax (SDLT) in the UK

As of 1 April 2025, the UK government has reverted Stamp Duty Land Tax (SDLT) thresholds to their pre-September 2022 levels, ending the temporary relief introduced to boost the housing market.

Key Changes

Standard Residential Purchases: The nil-rate band has been reduced from £250,000 to £125,000. Buyers now pay 2% on the portion from £125,001 to £250,000, and 5% on £250,001 to £925,000. More info.
First-Time Buyers: Relief now applies only up to £300,000 (down from £425,000). Purchases between £300,001 and £500,000 incur a 5% charge. No relief above £500,000.
Additional Properties: The surcharge on second homes has risen from 3% to 5%. More info.

These changes have increased tax bills significantly. For example, a first-time buyer purchasing a £500,000 home now pays £10,000 in SDLT. Home movers buying a £300,000 property pay £5,000—double the previous amount.

There was a notable rush to complete purchases before these changes took effect. Buyers are advised to use SDLT calculators or consult advisors to understand their obligations.

See more about Stamp Duty on Skill Builder