The UK residential property market has entered a period of relative stability following the surge in activity ahead of the March stamp duty deadline, according to the latest Residential Property Trends Report from Landmark Information Group.
While the first quarter saw a spike in completions – driven by buyers rushing to complete before changes to Stamp Duty Land Tax (SDLT) came into effect – the second quarter marked a slowdown, with volumes returning to more typical levels.
Completions in Q1 were up 30% year-on-year, including a 79% jump in March alone.
But in Q2, transactions dropped by 21% compared to the same period last year as the market absorbed the impact of the pulled-forward demand.
COOLING-OFF
Despite the expected cooling-off, Landmark’s data points to signs of resilience. Sold Subject to Contract (SSTC) activity was 13% lower year-on-year in April and May but rebounded in June to match 2024 levels. Search order volumes rose 2% across the quarter, and completions in June were down just 6% year-on-year, suggesting underlying demand remains.
Listing volumes – a leading indicator of market sentiment – increased by 5% compared to Q2 2024, reinforcing the sense that sellers remain engaged.
However, elevated mortgage rates and ongoing affordability challenges are preventing that activity from converting into completions. Buyers remain cautious, and many transactions are being slowed by long chains and persistent procedural inefficiencies.
MARKET IN WAITING
Simon Brown, chief executive of Landmark Information Group, says: “This isn’t a market in decline, it’s a market in waiting.
“Sellers are active and the peak of activity ahead of the stamp duty change indicates an industry ready to move quickly as demand grows.
“The missing piece is momentum – and that will only return when affordability, rates and house prices are in balance.”
NORTH OF THE BORDER
In Scotland, which has not experienced recent changes to its equivalent property tax, activity has been steadier.
After an initial 11% dip in Sold Subject to Missives (SSTM) volumes between March and April, levels rebounded in May and June to match those of 2024. Completion volumes north of the border also fared better, falling just 6% over the same period – a less dramatic decline than seen across the wider UK.
UNLOCKING POTENTIAL
Brown adds: “There’s opportunity here. With the right economic conditions and a continued focus on digitising the transaction process and addressing systemic inefficiencies, we can drive movement for the long-term and finally unlock the economic potential of the UK’s property market.”
While the short-term outlook remains cautious, the report suggests the market is primed for recovery – if affordability pressures can be resolved and transactional bottlenecks addressed.
