Transactions rise sharply year-on-year, though experts urge caution on outlook
UK residential property transactions rose by 17% in May compared with the same month last year, according to seasonally adjusted figures from the Office for National Statistics (ONS).
The annual increase follows a similarly large rise the previous month and reflects weaker activity in April and May 2025, when transaction levels fell after changes to stamp duty land tax thresholds. Buyers had brought completions forward into March 2025 ahead of those changes, resulting in fewer transactions in the months that followed.
On a monthly basis, seasonally adjusted transactions slipped by 2%, from 100,440 to 98,450, though non-seasonally adjusted residential transactions rose by 7% over the same period.
Non-residential transactions showed a smaller shift. Seasonally adjusted figures for May were marginally higher, by less than 1%, than in April, and marginally lower, by less than 1%, than in May 2025. Non-seasonally adjusted non-residential transactions fell by 5% month-on-month.
"Today's HMRC figures showing an increase in housing transactions are an encouraging sign that activity is continuing to build, despite a market that remains shaped by affordability pressures and cautious buyer sentiment," said Nick Leeming (pictured right), chairman at estate agency Jackson-Stops.
"Across our network, we saw both new listings and buyer viewings increase throughout May, reflecting growing confidence among those looking to move. While buyers remain selective and negotiations are taking longer than they have in recent years, there is clear evidence that underlying demand remains resilient where homes are priced appropriately and sellers are prepared to meet the market."
Leeming noted that momentum was greatest in family and lifestyle markets, with upsizers driving a significant proportion of activity as households prioritise space, flexibility and long-term value.
"Although conditions remain more measured than during the post-pandemic market, today's figures suggest the market is gradually finding a more sustainable rhythm, underpinned by realistic pricing, improving supply and motivated buyers," he added.
Mark Harris (pictured right), chief executive of mortgage broker SPF Private Clients, menawhile, said the modest monthly dip reflected wider geopolitical pressures rather than a loss of underlying momentum.
"The fallout from the war in the Middle East is impacting housing market activity, although these figures show transaction numbers dipped by a relatively small percentage month-on-month," Harris said. "With the Bank of England holding base rate for now, mortgage lenders continue to trim their rates in light of improving funding conditions, which is good news for borrowers.
"However, nothing should be taken for granted and borrowers in need of a mortgage may wish to secure a rate sooner rather than later to protect themselves against fluctuating pricing."
Ryan McGrath (pictured right), director of second charge mortgages at Pepper Money, however, cautioned against reading too much into the headline rise, given the lag between offers and completions.
"These completions largely reflect offers made in the spring, before the conflict in the Middle East had much bearing on borrowing costs or sentiment, so they're more a snapshot of where things stood a few months ago than where they stand now," he pointed out.
"Since March, the calculation for borrowers has got harder, not easier. The rate cuts the market was pricing in for this year haven't happened, and average mortgage rates have moved up rather than down. That's the detail that matters more than this month's headline number, because it's what June, July and August completions will start to reflect.
“It also reinforces why we're not expecting a rush back to the market. Anyone sitting on a fixed rate they secured in the last couple of years has very little incentive to give it up and borrow at today's higher cost just to move."
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