The property trade has responded positively to the HMRC’s newest property transactions knowledge, which exhibits that the variety of UK residential transactions in Might 2025 was 81,470, some 12% decrease than Might 2024, however 25% increased than April 2025.
This marks a 25% enhance in comparison with April 2025.
On a non-seasonally adjusted foundation, residential transactions surged much more considerably, growing 42% month-on-month to 80,530.
Regardless of the sturdy month-to-month efficiency, year-on-year comparisons confirmed a decline.
The seasonally adjusted residential determine was 12% decrease than in Might 2024, whereas the non-adjusted quantity was down 13% in comparison with the identical month final 12 months.
Within the non-residential property sector, there have been 9,760 seasonally adjusted transactions in Might 2025, up 4% from April. Nonetheless, this determine stays 5% decrease than in Might 2024.
The non-seasonally adjusted estimate for non-residential transactions was 9,520 in Might 2025, exhibiting little change from April however down 9% on an annual foundation.
Business response:
Nick Leeming, Chairman of Jackson-Stops, commented: “The speed of exercise in Might demonstrates the property market’s endurance within the face of uncertainty. Regardless of exterior pressures, each on the economic system and purchaser affordability, the market continues to see properties promoting.
“Whereas April noticed a drop off in completions in direct response to the heightened exercise ranges over March, if we glance additional again, the present market stays up on two years in the past. This factors to the cyclical nature of the property market and variety of transactions which are pushed by patrons’ life phases, whether or not that’s upsizing to accommodate a rising household or downsizing to assist handle ongoing property upkeep.
“Within the present market, it’s important for sellers to recollect there’s at all times demand for a sensibly priced property. At a time when transactions on common at the moment are taking greater than 200 days to finish, sellers searching for a fast sale have to maintain the realities of their native market entrance of thoughts.”
Jeremy Leaf, north London property agent, stated: “This most complete of all of the housing surveys, because it consists of money and mortgaged transactions, doesn’t present what we’ve got been seeing on the bottom because the stamp obligation vacation ended.
“The market has misplaced some steam taking into account the variety of strikes that have been introduced ahead however it’s clearly not all gloom and doom as gross sales agreed numbers are rising and costs softening just a little, taking into account the appreciable enhance in inventory.
“There’s undoubtedly a reluctance to overstretch financially in view of financial uncertainty at house and overseas, which wanting ahead is unlikely to alter an excessive amount of within the subsequent few months.”
Jason Tebb, president of OnTheMarket, stated: “Might noticed a restoration in transactions following April’s droop, which had mirrored patrons bringing ahead purchases so as to reap the benefits of the stamp obligation vacation.
“This knowledge exhibits that the housing market stays remarkably resilient. Regardless of a maintain in base charge this month from the Financial institution of England, additional reductions are anticipated later within the 12 months, which ought to additional increase purchaser and vendor confidence.
“A number of charge reductions since final August have significantly helped encourage patrons and sellers to transact.
“Decrease mortgage charges are additionally serving to assist exercise, with various lenders lowering pricing and easing standards.
That is serving to affordability though patrons stay value delicate, significantly as there’s extra inventory for them to select from than has been the case shortly.”
Andrew Lloyd, managing director at Search Acumen: commented: “It’s encouraging to see an uptick in exercise following April’s fall in transactions, however the actuality is market efficiency stays underwhelming when in comparison with final 12 months.
“Our evaluation of HM Land registry knowledge confirmed complete transactions in Q1 have been only one.1% increased than final 12 months, however this modest progress was offset following the current drop in deal quantity.
“We’re now at a pivotal juncture. Optimistic indicators from the Authorities, following the Spending Overview and 10-12 months Infrastructure Technique, mixed with promising will increase in capital and hire values, have the potential to make sure investor confidence within the UK’s actual property ecosystem doesn’t dwindle.
“One enchancment that would turbocharge the sector, and drive momentum, is embedding digital instruments and strategies into the guts of transaction processes. By harnessing AI-powered automation, property offers may be smoother and extra cost-efficient than ever earlier than.”
Amy Reynolds, head of gross sales at Antony Roberts, famous: “The spring/summer time market is historically a time when individuals choose to maneuver and that is being mirrored in transaction numbers. There’s loads of want to purchase within the core value ranges and we’re additionally seeing an increase in first-time purchaser exercise, regardless that the stamp obligation vacation has ended. Many are receiving assist from household and being pushed by pressures within the rental market, the place demand far exceeds provide and rental listings have dropped sharply.
“Additional charge cuts at the moment are wanted to stimulate the expansion because the economic system feels stagnant and liable to sliding into austerity.”
Hamza Behzad, enterprise improvement director at Finova, remarked: “At this time’s enhance is optimistic information for the housing market. Though general transaction volumes didn’t match the heady highs of March – when thousands and thousands of patrons rushed towards the clock to fulfill the Stamp Responsibility threshold deadline – precise exercise within the UK property market remains to be strong.
“It is a constructive signal, however customers ought to nonetheless take care on this evolving market. The bottom charge has clung to 4.25%, which can have an effect on mortgage product availability and lead some aspiring patrons to postpone their homeowning goals.
“Nonetheless, the market remains to be rife with excessive LTV choices, which can solely ramp up competitors and create home windows of alternative for patrons of all ages to step onto the property ladder.
“However lenders should proceed to spend money on progressive expertise to ship extra environment friendly selections and quicker product-to-market occasions. The flexibility to scale and react at pace will probably be key to succ
Kevin Roberts, managing director of L&G’s Mortgage Companies enterprise, added: “The figures are encouraging for the trade, particularly after the flurry of exercise we noticed in March to beat the stamp obligation modifications deadline.”
