"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"
- Andrew Lloyd - Search Acumen
According to HMRC’s provisional data, the number of seasonally adjusted residential transactions increased by 25% month-on-month to 81,470, up from 65,110 in April.
This rebound follows the reduction in the nil-rate threshold for Stamp Duty Land Tax (SDLT), which fell from £250,000 to £125,000 on 1 April. The threshold for first-time buyers also decreased from £425,000 to £300,000. The transition prompted some buyers to complete purchases in March, leading to a drop in April and a recovery in May.
Despite the monthly rise, residential transactions were 12% lower than in May 2024. On a non-seasonally adjusted basis, 80,530 residential transactions took place in May, representing a 42% increase from April but a 13% decrease compared to the same month last year.
In the non-residential sector, seasonally adjusted transaction volumes reached 9,760 in May, 4% higher than April but 5% below May 2024. The non-seasonally adjusted figure stood at 9,520, marginally lower than April and 9% down year-on-year.
These figures illustrate a market influenced by short-term fiscal policy shifts while reflecting broader, longer-term patterns of subdued activity.
Industry reaction
Richard Donnell, Executive Director at Zoopla, commented, "The stamp duty holiday continues to impact transaction volumes with 13 per cent fewer sales in May 2025 compared to last year as buyers bought forward sales ahead of the deadline for lower stamp duty costs.
"Our leading data shows new sales are being agreed at the fastest rate for four years as more homes for sale means more buyers in the market, with the stamp duty changes in the distant past in the minds of home buyers. The market remains on track for 1.15m sales in 2025, up five per cent on 2024 levels as more households move home."
Andrew Lloyd, Managing Director at Search Acumen, comments, “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.”
Simon Webb, managing director of capital markets and finance at LiveMore, said, “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.”
