The number of house sales concluded in April saw a significant decline, marking the lowest total since the initial lockdown due to increased stamp duty rates.

According to HM Revenue & Customs, there were 55,970 residential transactions across the UK in April, representing a staggering 66 percent drop from March. This sharp decline has been identified as the most substantial month-on-month decrease recorded by HMRC.

April’s transaction volume was the least active since May 2020 when the housing market faced substantial restrictions. In contrast, March 2023 witnessed 165,340 sales, reflecting an 81 percent increase from the preceding month and establishing it as the busiest month since June 2021, just prior to the expiration of the last stamp duty holiday.

Anthony Codling, a housing analyst at RBC, remarked that these figures provide clear evidence of a surge in purchases that occurred leading up to the March stamp duty deadline.

Many sellers aiming for April completion dates attempted to expedite their transactions to March in an effort to avoid higher stamp duty costs. First-time buyers, in particular, could save up to £11,250 in additional costs by completing their purchases on March 31 instead of April 1.

Effective April 1, the starting point for stamp duty payments was reduced to £125,000 from £250,000, while the threshold for first-time buyers was lowered from £425,000 to £300,000.

Market analysts had predicted a spike in sales in March followed by a delay in April’s activity. It is generally anticipated that transaction levels will stabilize throughout the summer months.

Although mortgage rates have seen a slight increase recently, they remain favorable compared to rates at the start of 2025. For instance, the average interest rate for a two-year fixed mortgage was above 5 percent in January but has decreased to 4.64 percent, according to Rightmove, a trend that is likely to foster continued transactions.

Aneisha Beveridge, research head at Hamptons, suggested that reduced mortgage rates have mitigated the impact of increased stamp duty obligations and are expected to support sales in the coming year. She projects approximately 1.2 million transactions in the UK for 2023, which would represent an 11 percent increase compared to 2024.

The latest HMRC data corroborates earlier spring trends, while recent analyses indicate a resurgence in the housing market following a relatively quiet Easter period.

Zoopla, the property search platform, reported a notable increase in agreed sales over the past weeks, estimating a 6 percent rise in transactions compared to the same time last year, the highest year-on-year growth since 2021.

Richard Donnell, executive director at Zoopla, noted that this uptick is supported by more relaxed mortgage affordability assessments, a broader base of active buyers, and an uptown in available homes for sale.