Experts highlight data processes need amid transaction surge
UK property transactions surged in March as buyers rushed to complete deals before Stamp Duty thresholds changed in April, according to the latest figures from HM Revenue & Customs (HMRC).
Seasonally adjusted residential transactions jumped 62% month-on-month, from 109,700 in February to 177,370 in March. Non-seasonally adjusted figures show an even sharper rise, with residential transactions up 80% on the month, marking the third largest increase on record, following spikes in March 2016 and June 2021.
The increase coincides with the end of temporary Stamp Duty Land Tax (SDLT) relief. On April 1, the nil-rate threshold for standard purchases reverted from £250,000 to £125,000, while for first-time buyers, it fell from £425,000 to £300,000.
Commercial property deals also rose, the HMRC figures showed. Seasonally adjusted non-residential transactions were 10% higher in March compared to February and 12% higher than a year earlier. On a non-seasonally adjusted basis, the increase reached 37% month-on-month.
“March saw a notable rise in residential transactions, largely driven by buyers aiming to complete before the Stamp Duty changes took effect,” said Richard Pike (pictured left), chief sales and marketing officer at Phoebus Software. “We could see a cooling off-period in the coming months as the market settles.”
Pike noted that possible interest rate reductions from the Bank of England could provide additional support to the housing market, although broader economic uncertainty remains a factor.
“The impressive flurry in residential buyer activity as we reached the end of the stamp duty holiday was mirrored by a similarly strong performance in the commercial real estate sector,” added Andrew Lloyd (pictured centre), managing director at Search Acumen. “Investors were drawn to shopping centres and warehouses as retail emerged as the leading sector delivering strong returns.
“While earnings growth and steady demand for commercial property point towards a promising summer, transaction processes remain plagued by time-consuming inefficiencies that risk stalling market activity at a critical moment.
“The evidence is clear. Embracing digital tools to modernise current antiquated procedures will help unlock the full potential of the market.”
Maria Harris (pictured right), chair of the Open Property Data Association, agreed, saying that “the homebuying and selling process remains a frustrating one for consumers and the industry.”
“Simplifying and improving transparency in property transactions, for buyers, sellers, and professionals alike, has never been more urgent,” she said. “But to achieve this, we need government and industry to deliver accessible, trustable, and secure data.
“Digitising property information and enabling it to be shared through open standards is a critical step toward the transformation the industry so badly needs.”
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