How Stamp Duty Changes and Interest Rate Stability Are Shaping the UK Property Market in 2025

The UK property market has kicked off 2025 with notable changes, both for buyers and homeowners. Following the expiration of temporary Stamp Duty Land Tax (SDLT) relief and the stabilisation of interest rates, conditions are evolving. And for many, that presents new opportunities. In this post, we’ll break down what’s happening in the market, what it means for different regions, and how buyers can take advantage of these shifts.

Stamp Duty Changes: What Just Happened?

At the start of the year, thousands of buyers rushed to complete their purchases before the SDLT relief window closed. As a result, March 2025 saw a dramatic 71% increase in completions compared to the previous year. This spike created urgency, but it also pushed a lot of demand forward. Now that the deadline has passed, the market is beginning to rebalance.

What this means for you: With less competition, buyers currently have more leverage and may find better opportunities to negotiate favourable terms with motivated sellers.

Interest Rates in 2025: Finally Some Stability

After several years of volatility, mortgage interest rates are holding steady particularly for fixed-rate products.

Here’s what we’re seeing:

• Mortgage valuations are up 8% year-on-year

• Five-year fixed-rate deals are especially popular

• Lenders are increasingly competitive, offering enhanced incentives for high-quality applications

Why this matters: If you're considering a purchase or remortgage, this period of rate stability offers a rare chance to secure long-term affordability with greater confidence.

How are Regional Trends Shaping the UK Property Market in 2025: England, Wales & Scotland

The national market is stabilising, but activity varies significantly by region.

In England and Wales, the property market showed moderate activity in Q1 2025. Listings remained steady with a slight year-on-year increase of 1%, while properties marked as Sold Subject to Contract (SSTC) declined by 9%. Much of the market’s momentum in March was driven by the Stamp Duty Land Tax (SDLT) deadline, which temporarily inflated completion numbers. Now that the SDLT relief has ended, market activity is beginning to normalise, creating a more balanced environment for prospective buyers.

In contrast, Scotland’s market remained unaffected by SDLT, maintaining a consistent and measured pace. Listings rose by 11% year-on-year in Q1, indicating sustained interest. January saw a notable surge in legal and property search activity, which gradually tapered off as the quarter progressed. Overall, Scotland continues to demonstrate stable growth and balanced demand, while England and Wales appear to be entering a calmer, more buyer-friendly phase.

What Buyers Should Do Right Now

If you're considering a move this year, here’s our advice:

1. Explore Fixed-Rate Options Now Rates are currently stable, and many lenders are offering competitive terms. Acting now could help lock in long-term savings.

2. Leverage Negotiation Power Post-SDLT With fewer active buyers, you may be in a stronger position to negotiate lower prices or better terms with sellers.

3. Work with Us Directly

Many of the most competitive mortgage products on the market aren’t advertised publicly they’re only accessible through specialist brokers like us. At Three Keys Mortgages, we work across the entire market to match you with the right lender, product, and rate based on your specific goals and financial situation.

Book a Free Consultation

At Three Keys Mortgages, we help clients cut through the noise and find the right solution without pressure or jargon.

What you’ll get:

• Personalised mortgage advice

• Access to broker-only deals

• Support from enquiry to completion

Book your free consultation today Or call us directly to speak to one of our advisors.

The UK housing market in 2025 is not slowing down, it’s adjusting. And with that adjustment comes opportunity. Whether you're a first-time buyer or looking to remortgage, now may be the perfect time to act with insight and intention. Not sure where to start? We’re here to guide you through it.