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    Home»Property»Affordability holding back UK property market despite signs of stabilisation
    Property

    Affordability holding back UK property market despite signs of stabilisation

    July 16, 20253 Mins Read



    “This isn’t a market in decline, it’s a market in waiting”
    – Simon Brown – Landmark Information Group

    The UK property market experienced a cooling in Q2 2025 following a stamp duty-driven surge in March, according to Landmark Information Group’s latest Residential Property Trends Report. 

    While transaction volumes dipped after the end-of-quarter rush, key indicators suggest signs of stabilisation – though affordability challenges remain a core constraint.

    Landmark’s analysis, covering England, Wales and Scotland, shows that completions rose sharply in Q1 2025, up 30% compared to the same period in 2024. A particularly pronounced spike was recorded in March, where completions jumped 79% year-on-year, as buyers moved quickly to benefit from the Stamp Duty Land Tax (SDLT) deadline.

    However, activity subsequently declined. Completion volumes across Q2 2025 were 21% lower than the same quarter last year, reflecting a natural slowdown after the tax-driven peak. Despite this, June brought early indications of recovery, with Sold Subject to Contract (SSTC) volumes returning to 2024 levels and completion volumes just 6% below those recorded in June 2024.

    The data also indicates resilient underlying demand. Search order volumes increased by 2% across the quarter, and new property listings were up 5% year-on-year, suggesting sellers remain engaged and optimistic. However, affordability pressures continue to weigh heavily on buyers, limiting the pace of progress through the transaction pipeline.

    April and May saw SSTC volumes fall 13% below 2024 figures, and the number of completions remained suppressed. Buyers are still contending with affordability constraints despite more competitive mortgage rates and ongoing house price corrections. Long property chains are also reported to be causing delays, further impacting conversion rates.

    In contrast, Scotland’s property market displayed relative stability. Unlike the rest of the UK, Scotland’s Land and Buildings Transaction Tax (LBTT) was not amended this year, contributing to a more consistent pattern. After an 11% drop in Sold Subject to Missives (SSTM) volumes between March and April, activity returned to 2024 levels in both May and June.

    Completion volumes in Scotland also remained steady, showing just a 6% decline between March and April. These figures underscore the resilience of Scotland’s transaction system, where the structure of the legal process is often credited with improving certainty and reducing fall-through rates.

    Commenting on the findings, Simon Brown, CEO of Landmark Information Group, said, “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.”

    Brown added, “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.”



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