The property industry has responded positively to the HMRC’s latest property transactions data, which showed that the number of UK residential transactions in May 2025 was 81,470, some 12% lower than May 2024, but 25% higher than April 2025.
This marks a 25% increase compared to April 2025.
On a non-seasonally adjusted basis, residential transactions surged even more significantly, increasing 42% month-on-month to 80,530.
Despite the strong monthly performance, year-on-year comparisons showed a decline.
The seasonally adjusted residential figure was 12% lower than in May 2024, while the non-adjusted number was down 13% compared to the same month last year.
In the non-residential property sector, there were 9,760 seasonally adjusted transactions in May 2025, up 4% from April. However, this figure remains 5% lower than in May 2024.
The non-seasonally adjusted estimate for non-residential transactions was 9,520 in May 2025, showing little change from April but down 9% on an annual basis.
Industry reaction:
Nick Leeming, Chairman of Jackson-Stops, commented: “The rate of activity in May demonstrates the property market’s endurance in the face of uncertainty. Despite external pressures, both on the economy and buyer affordability, the market continues to see properties selling.
“While April saw a drop off in completions in direct response to the heightened activity levels over March, if we look further back, the current market remains up on two years ago. This points to the cyclical nature of the property market and number of transactions that are driven by buyers’ life stages, whether that’s upsizing to accommodate a growing family or downsizing to help manage ongoing property maintenance.
“In the current market, it’s essential for sellers to remember there is always demand for a sensibly priced property. At a time when transactions on average are now taking more than 200 days to complete, sellers looking for a quick sale need to keep the realities of their local market front of mind.”
Jeremy Leaf, north London estate agent, said: “This most comprehensive of all the housing surveys, as it includes cash and mortgaged transactions, does not show what we have been seeing on the ground since the stamp duty holiday ended.
“The market has lost some steam bearing in mind the number of moves that were brought forward but it’s clearly not all gloom and doom as sales agreed numbers are rising and prices softening a little, bearing in mind the considerable increase in stock.
“There is definitely a reluctance to overstretch financially in view of economic uncertainty at home and abroad, which looking forward is unlikely to change too much in the next few months.”
Jason Tebb, president of OnTheMarket, said: “May saw a recovery in transactions following April’s slump, which had reflected buyers bringing forward purchases in order to take advantage of the stamp duty holiday.
“This data shows that the housing market remains remarkably resilient. Despite a hold in base rate this month from the Bank of England, further reductions are expected later in the year, which should further boost buyer and seller confidence.
“Several rate reductions since last August have greatly helped motivate buyers and sellers to transact.
“Lower mortgage rates are also helping support activity, with a number of lenders reducing pricing and easing criteria.
This is helping affordability although buyers remain price sensitive, particularly as there is more stock for them to choose from than has been the case in a while.”
Andrew Lloyd, managing director at Search Acumen: commented: “It’s encouraging to see an uptick in activity following April’s fall in transactions, but the reality is market performance remains underwhelming when compared to last year.
“Our analysis of HM Land registry data showed total transactions in Q1 were only 1.1% higher than last year, but this modest growth was offset following the recent drop in deal volume.
“We’re now at a pivotal juncture. Positive signals from the Government, following the Spending Review and 10-Year Infrastructure Strategy, combined with promising increases in capital and rent values, have the potential to ensure investor confidence in the UK’s real estate ecosystem does not dwindle.
“One improvement that could turbocharge the sector, and drive momentum, is embedding digital tools and methods into the heart of transaction processes. By harnessing AI-powered automation, property deals can be smoother and more cost-efficient than ever before.”
Amy Reynolds, head of sales at Antony Roberts, noted: “The spring/summer market is traditionally a time when people prefer to move and this is being reflected in transaction numbers. There’s plenty of desire to buy in the core price ranges and we’re also seeing a rise in first-time buyer activity, even though the stamp duty holiday has ended. Many are receiving help from family and being driven by pressures in the rental market, where demand far exceeds supply and rental listings have dropped sharply.
“Further rate cuts are now needed to stimulate the growth as the economy feels stagnant and at risk of sliding into austerity.”
Hamza Behzad, business development director at Finova, remarked: “Today’s increase is optimistic news for the housing market. Although overall transaction volumes did not match the heady highs of March – when millions of buyers rushed against the clock to meet the Stamp Duty threshold deadline – actual activity in the UK property market is still robust.
“This is a positive sign, but consumers should still take care in this evolving market. The base rate has clung to 4.25%, which may affect mortgage product availability and lead some aspiring buyers to postpone their homeowning dreams.
“Nonetheless, the market is still rife with high LTV options, which will only ramp up competition and create windows of opportunity for buyers of all ages to step onto the property ladder.
“But lenders must continue to invest in innovative technology to deliver more efficient decisions and faster product-to-market times. The ability to scale and react at speed will be key to succ
Kevin Roberts, managing director of L&G’s Mortgage Services business, added: “The figures are encouraging for the industry, especially after the flurry of activity we saw in March to beat the stamp duty changes deadline.”
Read the orginal article: https://propertyindustryeye.com/residential-property-transactions-bounce-back-in-may-hmrc/
