According to HMRC, transactions were also 62% higher than the previous month.
On a non-seasonally adjusted basis, house transactions totalled 164,650 – 89% up on the previous year and 80% higher than February.
Capacity concerns amid predictable housing market boost
With the stamp duty nil-rate threshold falling on 1 April, industry figures said the rise in transactions was to be expected.
Maria Harris, chair of the Open Property Data Association (OPDA), said: “Residential transactions have risen yet again, which is not surprising given the rush to complete transactions ahead of the stamp duty deadline. With the Bank of England hinting at further rate cuts this quarter, we could see more stability in mortgage pricing, which could help to maintain this momentum further into the year.”
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However, Harris commented on the sector’s ability to manage with a surge in activity.
She added: “We know that home buying transaction volumes are closely aligned with consumer confidence, yet the home buying and selling process remains a frustrating one for consumers and the industry, often resulting in a poor experience for everyone. Simplifying and improving transparency in property transactions, for buyers, sellers, and professionals alike, has never been more urgent.
“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.”
Melanie Spencer, sales and growth lead at Target Group, held a similar view, and said: “Stamp duty deadline aside, with some lenders slashing prices, and others pushing products allowing buyers to borrow on more generous multiples, no wonder transactions are up.”
She added: “Opinion formers have been talking about ‘momentum’. They should be talking about ‘capacity’. If brokers and lenders and conveyancers don’t look at increasing capacity soon, teams that were built for a quieter, slower property environment will start to run too hot in a race that’s more competitive than envisaged a year or two ago.”
Spencer said there were two answers to this, adding: “The first is to start hiring furiously, ramping up in the way the sector always has done in the face of up-cycles. That’s a short-term solution and it’s somewhat antediluvian now.
“The second option is to innovate and invest. Scaling via technology is a far better bet over the medium to long term. The mortgage industry should look at how it is digitising, automating, and embracing artificial intelligence (AI) to deal with higher volumes. My concern is that too many lenders – smaller building societies, in particular – are trying to duck the question and avoid making the investment.”
Mark Tosetti, CEO of CAL, part of Movera, said the rise was a “predictable response” to the stamp duty changes, resulting in “one of the biggest month-on-month jumps we’ve seen outside of previous policy deadlines”.
He said the scale of the increase showed how sensitive the housing market was to tax policy.
Tosetti added: “This was not limited to residential transactions either; the uplift in non-residential activity suggests broader confidence in the market when timelines are clear and incentives are strong.”
Similarly, Tosetti questioned the sector’s ability to cope with the higher levels of activity, adding: “As with past stamp duty changes, at times the pressure that can be seen across different areas of the property sector was intense. We hope the whole industry took lessons from earlier surges. We worked closely with our conveyancing partners to prepare early, manage capacity, and avoid bottlenecks. This kind of responsiveness is exactly why Movera exists – to bring together trusted services that keep the market moving efficiently, even under pressure.”
Will this last?
Kevin Roberts, managing director at L&G’s Mortgage Services business, said the figures showed the market was in great health, with competitive rates and the availability of low-deposit mortgages aiding this.
He added: “With further base rate cuts potentially on the horizon, affordability could improve even more in the coming months.”
Others speculated on whether activity would be sustained.
Emma Cox, managing director of real estate at Shawbrook, said although the stamp duty deadline gave the year a positive start, “there are concerns that activity may slow in the coming months, particularly due to broader economic challenges”.
She added: “These factors could be prompting property investors to adopt a more cautious approach until the situation stabilises.
“Keeping an eye on the upcoming interest rate decision will be crucial, especially for investors keen to grow their holdings.”
Tomer Aboody, director of MT Finance, said as buyers hoped the Bank of England would make further base rate cuts, “any assistance here will help the upwards trajectory in transaction numbers as the year progresses”.
Mark Harris, chief executive of SPF Private Clients, agreed, saying: “Rate reductions are a great way of boosting confidence and activity in the housing market, as we saw with the base rate cuts in the second half of last year and the reduction earlier this year.
“Further reductions from the Bank of England will help improve confidence and affordability and give the market some impetus now that the stamp duty concession has ended.”
Jeremy Leaf, North London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chair, said the lower stamp duty threshold had already resulted in people pulling out of house sales.
He said: “Although these figures inevitably reflect the determination of buyers and sellers to take advantage of the stamp duty holiday before it ended at the beginning of April, many would still have been unable to do so.
“Since then, on the ground, we have seen very few withdraw, although a fair proportion have tried to renegotiate in order to reflect the financial loss involved.
“Strong employment, complemented by healthy earnings growth in real terms as well as reducing borrowing costs in anticipation of lower base rates, are for the most part outweighing concerns about the wider economic picture.”
