Residential property transactions rose sharply in May 2025, with a provisional seasonally adjusted total of 81,470 recorded, according to the latest figures from HM Revenue & Customs (HMRC).
This marks a 25% increase compared to April 2025.
On a non-seasonally adjusted basis, residential transactions surged even more significantly, rising 42% month-on-month to 80,530.
Despite the strong monthly performance, year-on-year comparisons showed a decline.
The seasonally adjusted residential figure was 12% lower than in May 2024, while the non-adjusted number was down 13% compared to the same month last year.
In the non-residential property sector, there were 9,760 seasonally adjusted transactions in May 2025, up 4% from April. However, this figure remains 5% lower than in May 2024.
The non-seasonally adjusted estimate for non-residential transactions was 9,520 in May 2025, showing little change from April but down 9% on an annual basis.
Reaction:
Richard Pike, chief sales and marketing officer at Phoebus Software:
“After a quieter April, today’s data showing a rebound in property transactions for May is no surprise. April activity was artificially suppressed following the rush to complete in March ahead of the stamp duty deadline, so what we’re seeing now is a return to a more stable trend.
“Encouragingly, interest rates have now settled at a level where buyers can make clearer, more confident decisions about what they can afford. Swap rates remain favourable, and this stability is allowing lenders and borrowers alike to plan with greater certainty.
“There’s real effort from the industry to boost the market, particularly at the first-time buyer end, where efforts like 95% and even 100% mortgages are helping to stimulate activity.
“But consumer confidence is still the linchpin and with global economic pressures looming, such as the end of Trump’s tariff pause on 9th July, the industry will need to continue to work hard to maintain this positive trajectory.”
Nathan Emerson, CEO of Propertymark:
“It is extremely positive to see an enhanced magnitude of transactions month-on-month.
“But considering new Stamp Duty thresholds across England and Northern Ireland have kicked in, it’s understandable we have seen a considerable drop in housing transactions year-on-year.
“The housing market saw a mass rush of people working at pace to complete on their housing purchase to avoid any increased Stamp Duty liability. Nonetheless, we have seen positivity regarding the number of properties coming to the market, which has delivered a year-on-year increase of almost 15%.”
Simon Webb, managing director of capital markets and finance at LiveMore:
“The rise in property transactions in May is a positive signal that market confidence is gradually returning. A subdued April was unsurprising following the March stamp duty deadline rush, but nevertheless it’s encouraging to see stability returning to the housing market. With interest rates no longer in flux, we’re seeing growing confidence among borrowers who can now plan ahead with greater certainty.
“While there’s always much discussion around the needs of first-time buyers, it’s crucial we don’t overlook the changing needs of older homeowners. The over-50s represent one of the most underserved and financially diverse segments of the market.
“At LiveMore, we believe the return of market momentum must go hand-in-hand with greater product flexibility and advice tailored to later life. With the right support, older borrowers can play a powerful role in driving market activity – not just as movers or refinancers, but as key enablers of intergenerational wealth and mobility.”
Hamza Behzad, business development director at Finova:
“Today’s increase is optimistic news for the housing market. Although overall transaction volumes did not match the heady highs of March – when millions of buyers rushed against the clock to meet the Stamp Duty threshold deadline – actual activity in the UK property market is still robust.
“This is a positive sign, but consumers should still take care in this evolving market. The base rate has clung to 4.25%, which may affect mortgage product availability and lead some aspiring buyers to postpone their homeowning dreams.
“Nonetheless, the market is still rife with high LTV options, which will only ramp up competition and create windows of opportunity for buyers of all ages to step onto the property ladder.
“But lenders must continue to invest in innovative technology to deliver more efficient decisions and faster product-to-market times. The ability to scale and react at speed will be key to success in today’s dynamic market.”
Andrew Lloyd, managing director at Search Acumen:
“It’s encouraging to see an uptick in activity following April’s fall in transactions, but the reality is market performance remains underwhelming when compared to last year.
“Our analysis of HM Land registry data showed total transactions in Q1 were only 1.1% higher than last year, but this modest growth was offset following the recent drop in deal volume.
“We’re now at a pivotal juncture. Positive signals from the Government, following the Spending Review and 10-Year Infrastructure Strategy, combined with promising increases in capital and rent values, have the potential to ensure investor confidence in the UK’s real estate ecosystem does not dwindle.
“One improvement that could turbocharge the sector, and drive momentum, is embedding digital tools and methods into the heart of transaction processes. By harnessing AI-powered automation, property deals can be smoother and more cost-efficient than ever before.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“The spring/summer market is traditionally a time when people prefer to move and this is being reflected in transaction numbers. There’s plenty of desire to buy in the core price ranges and we’re also seeing a rise in first-time buyer activity, even though the stamp duty holiday has ended. Many are receiving help from family and being driven by pressures in the rental market, where demand far exceeds supply and rental listings have dropped sharply.
“Further rate cuts are now needed to stimulate the growth as the economy feels stagnant and at risk of sliding into austerity.”
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“Transaction numbers have risen again as base rate reductions encourage activity and enable borrowers to plan ahead with more confidence.
“We expect interest rates to fall further from their current level although the pace and size of cuts may be more gradual than the markets thought only a few weeks ago as a result of higher inflation and the wider economic picture.
“In the meantime, lenders continue to trim their mortgage rates as Swap rates fall. Easing of criteria should also enable borrowers take on bigger mortgages in coming months.”
Jason Tebb, president of OnTheMarket:
“May saw a recovery in transactions following April’s slump, which had reflected buyers bringing forward purchases in order to take advantage of the stamp duty holiday.
“This data shows that the housing market remains remarkably resilient. Despite a hold in base rate this month from the Bank of England, further reductions are expected later in the year, which should further boost buyer and seller confidence.
“Several rate reductions since last August have greatly helped motivate buyers and sellers to transact.
“Lower mortgage rates are also helping support activity, with a number of lenders reducing pricing and easing criteria.
This is helping affordability although buyers remain price sensitive, particularly as there is more stock for them to choose from than has been the case in a while.”
Tony Hall, head of business development at Saffron for Intermediaries:
“Today’s transactions data for May reflects a recent boost in confidence across the housing market after last month’s interest rate cut and a steady easing of inflation.
“Many buyers who had previously paused their plans are now returning to the market, encouraged by greater mortgage choice and increased supply. This shift is helping to unlock pent-up demand and push transaction volumes higher.
“Looking ahead, there are reasons to remain optimistic. Although interest rates were held at 4.25% last Thursday, the government’s £39 billion pledge to boost affordable housing – announced in the Chancellor’s spending review earlier this month – will be welcome news for many.
“It signals that long-term housing challenges are being taken seriously, and with summer demand building and more homes coming to market, conditions are gradually shifting in buyers’ favour as we move into the second half of the year.”
Ryan McGrath, director of second charge mortgages at Pepper Money:
“Property transactions rebalanced in May after declining in April, in part due to the Stamp Duty deadline which created a race to the finish for homeowners looking to maximise savings. Despite an uptick in transactions month on month, with many homeowners still locked into historically low mortgage rates, we’re seeing a clear shift in behaviour.
“Rather than risk higher borrowing costs by moving, homeowners are choosing to invest in the home they have and make their current space work better for them, whether that’s through renovations, extensions, or energy efficiency upgrades. Secured loans are one way to fund this trend, offering a practical way to unlock the money you need without disrupting your existing mortgage rate, unlike remortgaging.
“As well as funding home improvements, homeowners can also consolidate debts, make business investments, or fund major life events at the same time, all while spreading the cost over a longer period of time than with a credit card or unsecured loan. While not always the right option, homeowners should speak to a broker to understand if a secured loan could suit their circumstances.”
Kevin Roberts, managing director of L&G’s Mortgage Services business:
“Today’s figures are encouraging for the industry, especially after the flurry of activity we saw in March to beat the stamp duty changes deadline.
“We know that borrower needs are ever-changing, with our broker data revealing an 80% increase in older first-time buyers aged between 56 and 65 looking for mortgages.
“This amplifies the value of advice to find the right product for individual needs, and is why speaking to a professional mortgage broker is essential for navigating the market.”
Tomer Aboody, director of specialist lender MT Finance:
“This was a positive month for the housing market with transaction levels increasing, although they are still lower than was the case 12 months ago. Confidence in the market is being fuelled by further mortgage rate cuts making purchases more affordable, although higher stamp duty is still holding some back.
“With the Bank of England holding rates this month when many were hoping for a cut, the big question is whether we will see another rate reduction this year. With the market needing fuel to really boost activity, either a rate cut or reduction in stamp duty is required, but with the Labour Government seemingly intent on increasing taxes, further stamp duty reductions seem unlikely.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“This most comprehensive of all the housing surveys, as it includes cash and mortgaged transactions, does not show what we have been seeing on the ground since the stamp duty holiday ended.
“The market has lost some steam bearing in mind the number of moves that were brought forward but it’s clearly not all gloom and doom as sales agreed numbers are rising and prices softening a little, bearing in mind the considerable increase in stock.
“There is definitely a reluctance to overstretch financially in view of economic uncertainty at home and abroad, which looking forward is unlikely to change too much in the next few months.”
