With the news of the latest HMRC Property Transactions Data being released today, industry experts and professionals have been sharing their views and thoughts with us.
Thomas Lambert, financial planner at Quilter said:
“The property market has clearly sprung into action, with residential transactions jumping 28% year-on-year and 13% compared to January. A big driver behind this flurry of activity is the looming change to Stamp Duty in April, which is pushing buyers to get their deals done before tax bills rise. We’d expect to see March’s figures climb even higher as more people race to complete in time.
From April, the Stamp Duty thresholds will fall back down meaning many buyers, particularly first-time buyers, will face a bigger upfront cost. That deadline pressure is helping to inject some momentum into the market, but the real test will come next month. Once the new rules kick in, we’ll get a clearer sense of whether demand holds up or starts to stall.
There was also a nod to the longer-term housing picture in this week’s Spring Statement, with the government announcing a £2 billion boost to the Affordable Homes Programme. More housebuilding is essential if we’re going to prevent prices from spiralling further and making affordability even worse—so that investment is welcome, even if it’s unlikely to shift the dial overnight.
Looking ahead to the Autumn Budget, all eyes will be on Labour to see if they offer more help for first-time buyers. But given the limited fiscal headroom they’re working with, any big giveaways seem unlikely for now.”
Ryan McGrath, Director of Second Charge Mortgages at Pepper Money, comments: “With Stamp Duty changes coming into effect next week, the increase in residential property transactions suggests that prospective buyers have been doing all they can to take advantage of the financial saving.
Yet with house prices rising and the Bank of England’s decision to hold interest rates, affordability continues to be an insurmountable barrier to moving for some. One consequence for buyers that have seen their lifestyle change is to improve the home they already have, unlocking the funds they need with a secured loan that doesn’t disrupt the rate on their current mortgage.
With the secured loans market showing significant rates of growth in last 12 months, it’s clear that consumers are recognising the funding option they can provide. In addition to home renovations, secured loans are a strong choice to consider for people looking to settle personal tax bills, pay off school fees, or consolidate debts, with customers reducing outgoings by more than £600 a month on average by consolidating their debts with a secured loan.”
Richard Pike, chief sales and marketing officer at Phoebus Software said: “A peak in residential transactions in February was expected as buyers rushed to complete purchases ahead of the stamp duty deadline, mirroring trends seen before previous tax changes. While this has contributed to the uplift in today’s figures and is likely to be repeated in March data, we may see a slowdown in April as the market adjusts. Despite this, transaction levels remain significantly higher than this time last year, suggesting underlying demand is still strong. With interest rate cuts this year providing some support but broader economic pressures weighing on affordability, the coming months will be key in assessing whether market momentum can be sustained.”
Nathan Emerson, CEO of Propertymark, comments: “It is positive news that many consumers have adapted to current market conditions concerning typically higher interest rates and the impact this can have on a potential house move. House price growth has recently been reflected in this month’s UK House Price Index which was published this week and found the average house price increased by 4.9 per cent year on year, which will provide comfort to existing homeowners.
However, various governments across the UK must pay close attention to meeting their individual housing targets to help stabilise overall supply. Across the forthcoming years it will remain vital demand is met, as we see an ever-expanding population, which is expected to hit around 70m people by the end of the decade which in the longer term as supply increases this will keep a balancing effect on prices increases.”
Melanie Spencer, sales and growth lead at Target Group, said: “It is really positive to see transactions continue to outperform this time last year as buyers respond to more favourable interest rates, although the month-on-month stats perhaps show a more stable ‘steady as we go’ picture.
It’s important to note that with transaction times as they are, these buyers would have said yes perhaps a couple of months prior to January – meaning they may not yet reflect the rush to beat the stamp duty threshold change. We’ve heard from the likes of Propertymark, who have reported an uplift in the sales market among its members in January, which was driven mainly by the stamp duty rise. As we reach this threshold change next week and the cost to buy increases, it will be interesting to see what impact this has on future activity – especially as inflation looks set increase over the coming months.
It’s another example of why it is so important we push ahead with efforts to digitalise the mortgage and wider homebuying process to drive efficiencies and better experiences for buyers and all parties involved in the process. Lenders play a key role in this, making sure they have the right partners, tech and integrations to support product innovation, faster decision-making and efficiencies in the wider mortgage process.”
Simon Webb, managing director of capital markets and finance at LiveMore, said:
A peak in February was anticipated as buyers moved quickly to complete purchases ahead of the stamp duty deadline, and while we may see a temporary slowdown in April after the deadline, demand remains strong and transaction volumes are significantly up on this time last year.
For older borrowers, stability in the housing market is essential, whether they’re looking to move, rightsize, or unlock equity from their homes. With recent cuts to interest rates, there are increasing opportunities for over-50s to access flexible later-life lending solutions that support their financial goals. At LiveMore, we’re committed to helping this underserved group navigate the market with confidence, ensuring they have the options they need to make the most of their homeownership journey.”