Property transactions across the UK surged in May, rebounding strongly after a subdued April that followed a rush to complete purchases ahead of changes to stamp duty thresholds.
New figures from HM Revenue & Customs show that seasonally adjusted residential transactions hit 81,470 in May – up 25% on the previous month, though still 12% lower than in May 2024.
The non-seasonally adjusted data tells a similar story, with 80,530 transactions recorded – a 42% increase on April, albeit 13% below the same month last year.
The recovery follows the recalibration of stamp duty land tax (SDLT) thresholds, which took effect on 1 April. The nil-rate band in England and Northern Ireland was reduced from £250,000 to £125,000, while the threshold for first-time buyers fell from £425,000 to £300,000.
ACCELERATED COMPLETIONS
The policy shift triggered a wave of accelerated completions in March, with many buyers rushing to take advantage of the more generous tax breaks before the deadline. That surge was followed by a predictable lull in April – a pattern analysts had anticipated.
May’s rebound suggests the market is beginning to stabilise, with transaction volumes returning to more typical seasonal levels.
However, the year-on-year declines highlight the continuing impact of higher borrowing costs, economic uncertainty, and affordability constraints on underlying demand.
Analysts expect activity to remain steady through the summer, though further recovery may depend on broader confidence returning to the housing market amid persistent inflationary pressures and speculation around future interest rate movements.
INDUSTRY REACTION
Nathan Emerson, Chief Executive of Propertymark, says: “It is extremely positive to see an enhanced magnitude of transactions month-on-month.
“But considering new stamp duty thresholds across England and Northern Ireland have kicked in, it’s understandable we have seen a considerable drop in housing transactions year-on-year.
“The housing market saw a mass rush of people working at pace to complete on their housing purchase to avoid any increased stamp duty liability. Nonetheless, we have seen positivity regarding the number of properties coming to the market, which has delivered a year-on-year increase of almost 15%.”
STRENGTH AND RESILIENCE
Iain McKenzie, Chief Executive of The Guild of Property Professionals, says: “This 25% month-on-month surge in property transactions is not just a rebound; it’s a powerful statement of the UK housing market’s fundamental strength and resilience.
“Following a predictable, short-term dip in April as the market recalibrated post-stamp duty changes, these figures for May are incredibly encouraging.
“The rush to complete in March created an artificial lull, but we are now seeing the return of genuine, underlying demand. The market has successfully absorbed the impact of the new tax thresholds and is now moving forward with confidence.
“Several key factors are fuelling this renewed vigour.”
“Several key factors are fuelling this renewed vigour. The recent interest rate cut to 4.25% has provided a welcome boost to buyer affordability. However, the most significant catalyst is the relaxation of affordability criteria from lenders.
“By enabling buyers to borrow more and stress-testing against more realistic rates, lenders have unlocked a new wave of purchasing power, playing a crucial role in driving these transactions forward.
“This isn’t a one-sided story of runaway demand. The significant 13% year-on-year increase in available properties is creating a healthier, more balanced marketplace.
“Buyers now have more choice than they’ve had for years, which is helping to keep price growth sustainable. This combination of strong, confident demand and increased supply is the perfect recipe for a stable and active market.”
NOT ALL DOOM AND GLOOM
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “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.”
MARKET UP 5%
Richard Donnell, Executive Director at Zoopla, says: “The stamp duty holiday continues to impact transaction volumes with 13% fewer sales in May 2025 compared to last year as buyers bought forward sales ahead of the deadline for lower stamp duty costs.
“Our leading data shows new sales are being agreed at the fastest rate for four years as more homes for sale means more buyers in the market with the stamp duty changes in the distant past in the minds of home buyers.
“The market remains on track for 1.15m sales in 2025, up 5% on 2024 levels as more households move home.”
CONFIDENCE BOOST
Jason Tebb, President of OnTheMarket, says: “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.”
RATE CUTS NEEDED
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “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.”
UNDERWHELMING PERFORMANCE
Andrew Lloyd, Managing Director at Search Acumen, says: “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.”
WE NEED CLARITY
Sharon Beedham, relationship director at ONP Solicitors, says: “The uptick in residential transactions for May is no surprise.
“Buyers rushed to complete ahead of April’s Stamp Duty threshold changes, resulting in an April slowdown followed by a strong May rebound – clearly demonstrating that tax policy continues to have a significant pull-forward effect on buyer behaviour.
“At the same time, while residential numbers are up month-on-month, the 12–13% year-on-year decline shows the market is also still grappling with broader affordability pressures and economic uncertainty.
“The sector needs consistency and clarity from policymakers to support sustained confidence. We’re seeing that when the rules shift, so does momentum, resulting in inevitable spikes in demand which often present a challenge for many in the sector. It will be interesting to see if activity can be sustained through the second half of the year without the crutch of temporary tax incentives.”
