UK residential property transactions rose modestly in June, suggesting that underlying market activity is beginning to strengthen despite continued economic and political uncertainty.

HM Revenue & Customs estimated that 98,700 residential transactions took place on a seasonally adjusted basis during the month. The provisional figure was 2% higher than in June 2025 and less than 1% above the 98,460 transactions recorded in May.

On a non-seasonally adjusted basis, residential transactions reached 103,050, an increase of 6% from a year earlier and 11% from May.

HMRC said the annual comparison was no longer being affected significantly by the disruption associated with the stamp duty land tax threshold changes introduced in England and Northern Ireland in April 2025. Transactions were brought forward into March of that year before returning to more typical levels in June.

The department said the year-on-year increase in June 2026 was therefore likely to represent a rise in underlying property market activity.

The commercial market presented a more mixed picture. Seasonally adjusted non-residential transactions totalled 10,300, up 2% from May but 4% lower than in June 2025.

The corresponding non-seasonally adjusted estimate was 10,640. This was 14% higher than in May and less than 1% above its level a year earlier.

Nathan Emerson, chief executive at Propertymark, said: “An increase in property transactions is an encouraging sign that buyers and sellers continue to have the confidence to move despite ongoing economic and political change. Healthy transaction levels are essential, not only for the housing market, but for the wider UK economy, supporting jobs, investment and local communities.

“Looking ahead, however, market confidence will depend on greater policy certainty. Recent discussions around potential reforms to Stamp Duty and council tax, alongside broader housing policy proposals from the new Prime Minister, have created questions for many consumers.

“People are understandably reluctant to make major financial commitments if they are unsure how future tax changes could affect the cost of moving.

“Housing thrives on confidence and stability. With interest rates having stayed the same following yesterday’s decision, consumers and lenders now have greater clarity over borrowing costs, allowing households to make informed decisions about their next move.

“We now need that same level of certainty from government on its long-term housing strategy to help sustain market momentum.”

Ryan Brailsford, distribution director at Pepper Money, said: “An annual rise in transactions is a positive signal. This time last summer, buyers were still adjusting to a run of much higher mortgage rates, and confidence across the market was noticeably fragile, so a step up on those numbers reflects a chunk of that adjustment now being absorbed.

“Mortgage approvals have picked up over recent months, and some lenders have adapted their affordability criteria to reflect changing market conditions, while continuing to apply robust checks. That’s translating into more people feeling able to commit to a move.

“That said, headline growth doesn’t mean the market has fully reopened for everyone. Self-employed borrowers often have complex or fluctuating income that requires more individual assessment, and 76% believe their employment status makes it harder to secure a mortgage.

“Yet the aspiration is clear: 80% hope to own a home, while around 300,000 self-employed adults with adverse credit expect to be in a position to buy within the next three years. This underlines the importance of trusted advice and lenders combining specialist understanding, responsible human judgement and data-enabled intelligence to assess each customer’s circumstances properly.”

Richard Sexton, managing director at Legal & General Surveying Services, said the improvement in activity should not come at the expense of valuation standards.

He said: “A rising tide does not lift all boats equally. In the housing market, stronger transaction numbers are welcome, but the real test is whether confidence is being matched by sound decision-making.

“The latest HMRC property transaction figures suggest activity is beginning to strengthen, providing a sign that some buyers and sellers are becoming more willing to move forward after a period of uncertainty.

“However, a busier market does not remove the need for careful risk assessment. In fact, as transaction levels recover, lenders must continue ensuring that increased activity is supported by accurate and proportionate valuations.

“The housing market is not made up of identical properties or identical risks. While some straightforward cases can benefit from increasingly sophisticated data and automated approaches, more complex properties and specialist lending scenarios still require experienced professional judgement.

“For valuation firms, the challenge is not simply keeping pace with transaction volumes. It is ensuring quality remains consistent as the market becomes more active.

“Sustainable growth depends on confidence at every stage of the process, from the initial lending decision through to the valuation that supports it.”

Richard Pike, sales and marketing director at Phoebus Software, urged caution over interpreting a single month’s figures.

He said: “A modest uptick in June’s transactions fits with the wider picture we’re seeing elsewhere – inflation has cooled more than expected, mortgage approvals ticked up slightly in June’s money and credit data, and the year-on-year comparison should be less distorted now we’re 15 months on from last year’s stamp duty deadline.

“That said, I’d be cautious about reading too much into one month’s improvement. These figures reflect decisions made before recent rate increases, so doesn’t necessarily tell us much about appetite going into the autumn.

“Buyers and lenders alike are still navigating real uncertainty, and the next few months of data will tell us far more than this one.”