After the Stamp Duty Rush, London Housing Market Braces for a Lull

Following a frenetic Q1 in which thousands of sales were rushed to beat April’s tax changes, the London housing market is now entering a period of relative calm.

Data from HMRC shows a 22% drop in residential transactions across the capital between March and April 2025. This comes after the end of the pandemic-era stamp duty reliefs, and new higher surcharges for second homes and buy-to-let.

Agents report fewer listings and reduced urgency from buyers. “We’re back to a wait-and-see market,” says one West London branch manager. “There’s still demand — but without the incentive deadlines, decisions are taking longer.”

Prices have held steady for now, but sellers are being advised to price realistically. Areas that saw sharp rises in late 2024 are most at risk of small downward corrections.

Mortgage approvals in April also dipped slightly, though lenders continue to introduce new fixed-rate deals. If the Bank of England cuts base rates mid-year, activity could pick up again in the autumn.

For now, London’s post-rush housing market looks stable but subdued. A pause, not a plunge.