Following a stamp duty-fuelled surge in March, Q2 2025 saw completions cool and transaction volumes slow, despite record levels of stock and more competitive mortgage rates, according to newly released figures from Landmark Information Group.
The Q2 2025 Residential Property Trends Report provides a detailed picture of property market activity across England, Wales and Scotland and has revealed muted momentum as the market continues to readjust after the peak caused by the stamp duty deadline on the final day of Q1.
Completions rose by 30% over the first quarter compared to the same period in 2024, with a 79% year-on-year surge in March alone as buyers rushed to complete ahead of the deadline. A drop-off was expected after the reinstatement of the old thresholds on 1st April and there was a fall below last year’s level as completion figures remained depressed across the second quarter (21% below Q2 2024).
However, the data shows signs of market recovery are evident with Sold Subject to Contract (SSTC) volumes returning to 2024 levels in June – as well as search order volumes (up 2% across Q2) – with a gradual return to typical levels of completions in June 2025, tracking just 6% below June 2024.
The data suggests a strong ongoing desire to move, with listing volumes in Q2 up 5% compared to 2024 levels. However, despite reported house price corrections and more stable interest rates, affordability remains the key barrier for many buyers, stunting economic growth.
Offers and completions are also lagging as affordability constraints and complications created by long chains remain. SSTC volumes were 13% lower than last year through April and May, and completion rates across the quarter were 21% below Q2 2024.
Key findings from the report:
- In England and Wales, listing volumes in Q2 averaged at 5% above 2024 levels
- In England and Wales, sold subject to contract (SSTC) volumes in Q2 were 13% below 2024 levels in April and May, but by June had reached the same level as the same month in 2024
- In England and Wales, search order volumes in Q2 2025 were consistently in line with 2024 levels, up 2% across Q2.
- In England and Wales, completions in Q2 2025 tracked 21% below Q2 2024. This was a stark difference compared to the abnormally high completion volumes in March 2025, which were 79% higher than March 2024
However in Scotland, where Land and Buildings Transaction Tax was not revised this year, the market shows a relatively stable picture. After dropping 11% from the end of Q1 to April, Sold Subject to Missives (SSTM) volumes rose again to 2024 levels in May and June. Furthermore, completion figures continue to hold steady against 2024 volumes showing a minimal drop off (6% between March and April) in completions at the turn of the quarter.
Simon Brown, CEO, Landmark Information Group, said: “This isn’t a market in decline, it’s a market in waiting. Sellers are active and the peak of activity ahead of the stamp duty change indicates an industry ready to move quickly as demand grows. The missing piece is momentum – and that will only return when affordability, rates and house prices are in balance.”
“There’s opportunity here. With the right economic conditions and a continued focus on digitising the transaction process and addressing systemic inefficiencies, we can drive movement for the long-term and finally unlock the economic potential of the UK’s property market.”
