UK property transactions rebound sharply in June as market regains momentum

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UK property transactions surged in June pointing to renewed confidence in the housing and commercial markets after a sluggish spring, according to the latest HMRC figures.

Residential transactions rose significantly month-on-month, with seasonally adjusted sales up 13% to 93,530 in June 2025, compared with 82,510 in May.

The number of non-seasonally adjusted transactions was even higher, climbing to 95,080, an increase of 17% on the previous month and 5% higher than June 2024.

The uptick follows a period of slower activity in the early part of the year, largely attributed to the end of temporary stamp duty relief measures.

MARKET STABILISATION

Analysts say the figures signal a stabilisation in the market, supported by improving mortgage affordability and increased consumer confidence.

Non-residential transactions also posted solid gains. The seasonally adjusted number of commercial property transactions rose 5% month-on-month to 10,310, while the non-seasonally adjusted figure hit 10,190, up 8% on both May 2025 and June 2024.

The latest data suggests the property market is showing resilience amid a backdrop of gradually easing borrowing costs and a more certain economic outlook.

Although activity levels remain below the peaks seen during the pandemic-era boom, June’s rebound indicates that demand is holding firm despite lingering affordability pressures and global economic uncertainty.

Economists will be watching closely to see if this momentum continues into the second half of the year, especially with the Bank of England expected to begin cutting interest rates before the end of the summer.

INDUSTRY REACTION
Richard Donnell, Zoopla
Richard Donnell, Zoopla

Richard Donnell, executive director at Zoopla, said: “The latest data shows housing sales are on the rise, picking up on improved buyer confidence from stable mortgage rates and more sellers in the market, many of whom are also buyers

“Zoopla data for sales, leads these completion statistics by five to six months, showing sales will continue to increase, with sales on track to total 1.15m, 5% higher than over 2024.”

ENCOURAGING UPLIFT
Clare Beardmore, L&G
Clare Beardmore, L&G

Clare Beardmore, director of distribution and mortgage club, mortgage services, L&G, said: “Today’s figures show an encouraging uplift in transactions. We are already seeing lenders offering more flexible products, following recent changes to affordability rules.

“In an ever-changing market, expert advice is more valuable than ever in helping buyers make informed decisions. For anyone considering their next move, consulting a mortgage adviser will put them in a great position to find a product that suits their individual needs.”

BIGGER MORTGAGES

Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “Transaction numbers have risen again as base rate reductions encourage activity and enable borrowers to plan ahead with more confidence.

Mark Harris
Mark Harris, SPF Private Clients

“The markets expect interest rates to fall further from their current level with another reduction in base rate forecast for next week. Lenders continue to trim their mortgage rates, while easing of criteria should also enable borrowers take on bigger mortgages in coming months.”

RENEWED CONFIDENCE

Tony Hall, head of business development at Saffron for Intermediaries, said: “Today’s figures show an encouraging uplift in transactions, indicative of resilience among buyers despite the recent rise in inflation.

Tony Hall, head of business development at Saffron for Intermediaries
Tony Hall, Saffron for Intermediaries

“Since April’s stamp duty threshold announcement, evidence suggests that buyer confidence has been renewed, and this sentiment continued in June. Challenges are lingering though, as multiple leading property portals have started to place pressure on the government to provide flexible SDLT payment options.

“With markets anticipating that the Bank of England will make two further interest rate cuts before the end of 2025, there are reasons to stay optimistic through the next few months.

The Chancellor’s recent decision to ease affordability rules also signals a long-term commitment to helping first-time buyers, and we’re already seeing lenders respond with more flexible mortgage options. Steady buyer activity combined with anticipated rate cuts suggest a positive outlook heading towards the autumn.”

FLAT MARKET
Joshua Elash, MT Finance
Joshua Elash, MT Finance

Joshua Elash, director of specialist lender MT Finance, said: “The data points to a flat residential property market and reflects what we are seeing on the ground when it comes to mortgages. Despite the lower interest rate environment, both the residential property market and the economy more generally continue to stagnate under the watch of this government.

“The one percent year-on-year growth is off of already suppressed transaction levels so means very little. As long as the ills of stagnation continue, the longer we expect this trend of low demand and transaction volumes to continue.”

STRONG POSITION
Ryan McGrath, Pepper Money
Ryan McGrath, Pepper Money

Ryan McGrath, director of second charge mortgages at Pepper Money, said: “Property transactions increased in June, returning to a steadier pace after an accelerated spring. The summer is a seasonally quieter period for the market, but committed buyers who need to move remain in a strong position to make the most of current listings and can benefit from mortgage rates of less than 5% on average.”

EASING RATES

Maria Harris, chair of the Open Property Data Association, said: “Residential transactions have risen again, suggesting that confidence is beginning to return to the market after the volatility and stamp duty changes earlier this year. Easing mortgage rates, greater product choice, and improving economic sentiment are all helping to support this recovery.

Maria Harris, OPDA
Maria Harris, OPDA

“While it’s great that volumes are back on the rise, the experience of buying and selling a home isn’t where we need it to be. Consumers and the industry are still stuck navigating a process that is opaque, inefficient, and largely paper-based – and that must change.

“To create a housing market that is fit for purpose, we need to deliver physical and digital housing strategy. Digitising property data at source and making it shareable using open, trusted standards removes the friction that holds transactions back. We need everyone in the industry driving change and adopting new ways of working to sustain this upward trend and create a system that works better for everyone.”

STABLE ENVIRONMENT
Nick Hale, Movera

Nick Hale, CEO at Movera, said: “The rise in residential transactions this month points to growing confidence in the market but it’s also a reminder of how closely activity tracks alongside interest rate movements, tax policy, and consumer sentiment. Buyers are clearly responding to the more stable rate environment and wider availability of mortgage products, particularly for first-time buyers.

“What matters now is whether this activity can be sustained. Without consistency in policy and clearer timelines across the home-moving journey, we risk another stop-start pattern that puts unnecessary pressure on the system.”

BUILDING MOMENTUM

Richard Pike, chief sales and marketing officer at Phoebus, said: “Today’s rise in residential transactions builds on the momentum we saw in May as the market continues to stabilise after the volatility earlier this year. Following the distortions created by the March stamp duty rush and the April lull, we’re now seeing the beginnings of a more sustainable trend.

Richard Pike, Pheobus Software
Richard Pike, Pheobus Software

“With interest rates holding steady at 4.25% and swap rates remaining favourable, borrowers are regaining some confidence in their ability to plan ahead. First-time buyer initiatives such as 95% and 100% mortgages are also continuing to support demand at the lower end of the market.

“That said, the broader economic picture remains mixed. Inflation has crept up again, and higher utility bills and tax pressures are squeezing disposable income. Globally, the expiry of Trump’s tariff pause earlier this month adds another layer of uncertainty that could filter through to consumer confidence.

“But for now, the rise in activity is encouraging. The industry must continue to push for innovation, flexibility and digitisation to maintain momentum – especially if we want this recovery to translate into longer-term resilience.”

STEADYING MARKET
Hamza Behzad, Finova
Hamza Behzad, Finova

Hamza Behzad, business development director at Finova said: “In a welcome break from the usual summer slowdown, the latest rise in UK property transactions signals growing buyer confidence. In May, we saw mortgage approvals shoot up for the first time in 2025, and as the Chancellor moves to slash regulatory red tape – potentially enabling lenders to offer mortgage loans at over four and a half times a buyer’s income – opportunities are opening up.

“While overall market activity hasn’t yet returned to historic highs, the market does appear to be steadying. With the Bank of England widely expected to cut rates next week, conditions could become even more favourable for buyers in the months ahead. As momentum builds, it’s the responsibility of technology partners to ensure lenders platforms can scale with both volume and product complexity – helping to supercharge the next phase of growth in the UK mortgage market.”

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