UK residential property transactions soared in February 2025, with landlords and investors acting quickly ahead of the incoming Stamp Duty Land Tax (SDLT) changes. The latest HMRC data shows a marked jump in completions, suggesting a renewed appetite for property investment as buyers aim to beat the tax shift scheduled for April.
The seasonally adjusted estimate of residential transactions for February stood at 108,250, up 28% on February 2024 and 13% higher than January 2025. Non-seasonally adjusted transactions also rose by 24% year-on-year, totalling 90,430 — a clear indicator that market activity is gaining traction, particularly in the face of tax uncertainty.
Landlords lead the charge before Stamp Duty reforms
According to Zoopla’s Executive Director, Richard Donnell, the property pipeline has been steadily recovering since the start of 2024, with activity accelerating as the April SDLT deadline looms. “The pipeline of housing sales has recovered over 2024 as sales volumes have grown,” he said.
“Our data shows this will grow higher again next month in March. Housing market activity continues to increase despite the ending of stamp duty relief,” Donnell added. “There is a stamp duty hangover effect in London where first-time buyers face the highest increase in costs of buying.”
With sales agreed up by 5% year-on-year and more stock entering the market, seasoned landlords are seizing the opportunity to expand their portfolios before tax changes bite.
This increase in completions reflects not only a rush to avoid extra SDLT costs but also a broader shift in sentiment — particularly among professional landlords who recognise that current market conditions favour long-term investment.
Private rental sector steps up as housing demand swells
While much of the media narrative has focused on homeowners and first-time buyers, landlords have been quietly reasserting their importance. Rental demand remains strong, with the private rented sector continuing to support a population now forecast to reach 70 million by the end of the decade.
Nathan Emerson, CEO of Propertymark, acknowledged the momentum: “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.”
He added that recent figures from the UK House Price Index, showing 4.9% annual growth in average house prices, will offer reassurance to investors. But he also called for more attention from policymakers: “Governments across the UK must pay close attention to meeting their individual housing targets to help stabilise overall supply.”
Landlords, meanwhile, are stepping in where social housing has failed to meet demand. With limited new development on the horizon and construction output still recovering, the private sector remains a crucial player in preventing a deepening housing shortage.
History shows tax changes trigger market peaks
This latest flurry of activity is far from unprecedented. Similar patterns were seen in March 2016, when landlords rushed to complete purchases before the introduction of higher stamp duty on additional homes. That spike was followed by a noticeable drop in transactions — a likely scenario in the months following April 2025 unless market confidence holds.
HMRC’s data cautions that February’s figures are provisional and may be revised, but the overall trend is undeniable. Compared to February 2024’s 84,520 seasonally adjusted completions, the jump to 108,250 in February 2025 is significant.
Historic data also shows that tax relief deadlines and fiscal policy shifts have long played a role in shaping transaction volumes. From the COVID-related dip in 2020, to the stamp duty holiday peaks of 2021, and now to Labour’s upcoming SDLT reform, the market repeatedly reacts to fiscal pressure points.
Landlords remain key as the market realigns
While some continue to speculate on the long-term impact of tax reforms, the latest figures suggest landlords are not only resilient but pragmatic. Acting early to minimise tax exposure while capitalising on property price growth and growing rental demand, they continue to form a backbone of the housing ecosystem.
As March’s figures are eagerly anticipated, landlords and property investors would be wise to consider their next move carefully. With transaction volumes climbing and political rhetoric focused on tax reform and regulation, opportunities still exist — but the window to act ahead of further change may be closing fast.
