UK residential property transactions rose 17% in May 2026 compared with the same month last year, although activity dipped slightly on a monthly basis, according to the latest HMRC figures.
The provisional seasonally adjusted estimate shows there were 98,450 residential transactions in May 2026, down 2% from April 2026 (100,440), but 17% higher than May 2025.
On a non-seasonally adjusted basis, residential transactions totalled 92,390 in May 2026, up 7% from April 2026 and 13% higher year-on-year.
HMRC said the annual increase reflects weaker activity in April and May 2025, when transactions were impacted by changes to Stamp Duty Land Tax thresholds.
Activity had been brought forward into March 2025 ahead of the changes, leading to a quieter period in the following months.
The data shows that seasonally adjusted residential transactions remain below recent monthly peaks, but continue to reflect a more stable annual trend compared with last year’s market disruption.
Non-residential transactions remained broadly flat in May 2026 on a seasonally adjusted basis, at 10,080, marginally lower (less than 1%) than May 2025 and marginally higher than April 2026.
On a non-seasonally adjusted basis, non-residential transactions came in at 9,380, down 4% year-on-year and 5% lower than April 2026.
Not a reflection of market conditions
HMRC stressed that transaction figures typically represent completions occurring two to four months after an initial offer is accepted, meaning they do not necessarily reflect current underlying market conditions.
The figures come a day after Bank of England data showed mortgage approvals fell to their lowest level since December 2023, highlighting weaker forward-looking demand despite a continued uplift in completed transactions.
Commenting on the figures, Karen Noye, mortgage expert at Quilter said: “While the annual comparison appears encouraging, it is heavily skewed by the distortions caused by last year’s Stamp Duty changes, which depressed activity in spring 2025 as buyers rushed through purchases to beat the deadline earlier than normal.
“As such, the year on year increase overstates the underlying strength of the housing market.
“A clearer picture emerges when this is viewed alongside yesterday’s Bank of England’s money and credit data. This points to a marked slowdown in housing activity feeding into the pipeline.
“Taken together, this suggests demand is being pushed out rather than building, as households hold back from making long-term financial commitments given an uncertain economic backdrop.
“The market is not short of underlying demand, but a significant proportion of buyers are choosing to delay decisions in the face of affordability pressures and uncertainty around the path of interest rates.”
Backward looking
She added: “These figures are also inherently backward looking, reflecting deals agreed earlier in the year.
“More recent developments, including heightened geopolitical tensions and the subsequent volatility in swap rates and mortgage pricing, are not yet fully captured.
“While the emergence of a ceasefire may provide some reassurance and could prompt a modest uptick in buyer interest, the outlook remains fragile.
She said many prospective buyers are likely to continue sitting on their hands.
Noye commented: “The experience of repeated shifts in mortgage pricing has made households more cautious, and there remains a strong preference to wait for clearer signs that borrowing costs are on a sustained downward path and that the wider environment is more stable before committing.
“Activity is no longer being artificially altered by policy changes, but nor is it benefiting from the conditions needed for a sustained recovery. Until mortgage rates show a clearer downward trajectory and confidence returns, transaction volumes are likely to remain constrained, with any improvement gradual rather than decisive.”
