Property transactions across the UK rose sharply in May following a subdued April, as activity returned to more typical levels after the rush to complete purchases ahead of stamp duty changes at the end of March.
According to HM Revenue & Customs, the seasonally adjusted estimate for UK residential transactions in May 2025 stood at 81,470, a 25% increase on April but 12% down on the same month last year.
The non-seasonally adjusted figure was similarly buoyant, climbing 42% on the month to 80,530, despite remaining 13% below May 2024’s level.
The rebound comes in the wake of changes to stamp duty land tax (SDLT) thresholds, which took effect on 1 April. The nil-rate band in England and Northern Ireland reverted from £250,000 to £125,000, while the threshold for first-time buyers dropped from £425,000 to £300,000.
These adjustments prompted a flurry of activity in March, pulling forward transactions and leading to an expected dip in April.
STABLE TREND
Richard Pike, chief sales and marketing officer at Phoebus Software, said: “After a quieter April, today’s data showing a rebound in property transactions for May is no surprise… what we’re seeing now is a return to a more stable trend.”
Non-residential transactions also edged higher, with seasonally adjusted figures for May rising 4% compared to April. However, they remained 5% below the level seen in May last year.
Stability in interest rates was widely cited as a contributing factor in the improved activity. Simon Webb, managing director of capital markets and finance at LiveMore, said: “With interest rates no longer in flux, we’re seeing growing confidence among borrowers who can now plan ahead with greater certainty.”
He also highlighted the often overlooked role of older homeowners, suggesting that greater product flexibility for later-life borrowers could unlock more market movement.
“The over-50s represent one of the most underserved and financially diverse segments of the market… with the right support, older borrowers can play a powerful role in driving market activity,” he said.
LAGGING PERFORMANCE
While the data suggests a return to steadier market conditions, some observers remain cautious. Andrew Lloyd, managing director at Search Acumen, noted that overall market performance still lags behind last year. “Our analysis of HM Land Registry data showed total transactions in Q1 were only 1.1% higher than last year… we’re now at a pivotal juncture.”
Lloyd called for more widespread adoption of digital tools and AI to streamline property transactions, arguing that automation could help lower costs and boost deal flow.
RATE CUT CALL
In the capital, Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, observed increased buyer demand across key price brackets, particularly from first-time buyers.
Many, she noted, are relying on family support in light of continued pressures in the rental sector, where demand continues to outstrip supply.
She added that “further rate cuts are now needed to stimulate the growth as the economy feels stagnant and at risk of sliding into austerity.”
EASING THE PRESSURE
From the mortgage perspective, Mark Harris, chief executive of SPF Private Clients, said lenders have been trimming rates as swap rates fall, with expectations of further base rate reductions to come.
“Easing of criteria should also enable borrowers [to] take on bigger mortgages in coming months,” he said.
Richard Donnell, executive director at Zoopla, said the effects of the March stamp duty deadline were still visible in year-on-year comparisons. However, he struck a more optimistic tone, noting that “new sales are being agreed at the fastest rate for four years.”
Zoopla now expects around 1.15 million property sales in 2025, a 5% increase on 2024.
