New data shows house sales in the UK fell by 64% in a single month – here’s why
New data shows house sales across the UK plummeted in April as several schemes which made it easier to buy a home in the country came to an end.
Data published by the HMRC on Friday, 30 May shows that there were 64,680 house sales in April 2025, compared with 177,440 in March 2025, representing a decrease of approximately 64% month-on-month.
Non-seasonally adjusted residential transactions decreased by 66% in April 2025 relative to March 2025. This is the highest month-on-month decrease since records began for non-seasonally adjusted figures, the HMRC said.
Seasonally adjusted non-residential transactions have also seen a decrease in transactions, with figures for April 2025 decreasing by 16% relative to March 2025, the group said.
The HMRC said the drop can primarily be attributed to changes in Stamp Duty Land Tax Rates in England and Northern Ireland which came into effect from April 2025.
On 1 April 2025, the nil-rate threshold, which had been £250,000, returned to the previous level of £125,000. The nil-rate threshold for first-time buyers also decreased on 1 April 2025, from £425,000 to £300,000.
The decrease in transactions for April follows increased transactions in March, probably brought forward to take advantage of the higher thresholds in March, the HMRC said.
A rollercoaster for the property market
The property market has been riding a rollercoaster in recent months, and today’s HMRC figures confirm what many expected – a post-March slump, said Karen Noye, mortgage expert at wealth management firm Quilter.
After the buying rush to beat the return of higher Stamp Duty rates, transaction numbers have inevitably collapsed by 64% month-on-month, reflecting the temporary nature of that surge, she said.
“On a year-on-year basis, transactions are also down considerable, with a drop of 28% on the year, painting a picture of a market that is normalising after artificial boosts. The slowdown in April also coincides with a modest contraction in UK house prices, which isn’t surprising – every time a stamp duty holiday ends, the market tends to catch its breath before regaining momentum,” she said.
“History tells us that when temporary tax reliefs drive the market, they often create frenzied spikes followed by sharp slowdowns. We saw this during the pandemic, and today’s figures are just another reminder that short-term incentives don’t guarantee long-term stability.”
However, it’s not all doom and gloom so don’t write off the market just yet, said Noye.
“With the Bank of England trimming interest rates to 4.25%, mortgage rates have been drifting lower, with sub-4% deals becoming more common. As cheaper fixed-rate mortgages and lower reversion rates take hold, buyers emerging from their current deals could find the conditions much more favourable.”
A sustained downward trend in rates could tempt more buyers back into the market, potentially lifting house prices over the coming months, she said.
“Next month’s data may reflect the early impact of this shift, especially if speculation of further rate cuts – possibly two or three more before year-end – gains traction.
“Looking further ahead, all eyes will be on Labour in the Autumn Budget to see if they extend a helping hand to first-time buyers. Yet, given the limited fiscal headroom available, any grand gestures seem unlikely – at least for now.”
