"The spring/summer market is traditionally a time when people prefer to move, and this is being reflected in transaction numbers"
- Amy Reynolds - Antony Roberts Estate Agency
UK residential property transactions rose sharply in May 2025 compared to the previous month, following a significant shift in stamp duty thresholds introduced in April.
According to HMRC’s provisional data, the number of seasonally adjusted residential transactions reached 81,470, marking a 25% increase from April's total of 65,110.
However, on a year-on-year basis, the figure represents a 12% decline from May 2024, reflecting broader cooling in the housing market.
The increase in monthly activity comes shortly after the nil-rate threshold for Stamp Duty Land Tax (SDLT) was reduced. As of 1 April 2025, the threshold returned to its previous level of £125,000, down from £250,000. For first-time buyers, the threshold also fell, from £425,000 to £300,000. These changes appear to have shifted the timing of some transactions, with activity pulled forward into March and rebounding in May after a drop in April.
On a non-seasonally adjusted basis, residential transactions in May stood at 80,530, up 42% from April but down 13% compared to the same month last year.
In the non-residential sector, seasonally adjusted transaction volumes in May reached 9,760. This reflects a 4% increase compared with April 2025 but a 5% decline year-on-year.
The non-seasonally adjusted figure for non-residential transactions was 9,520, showing a marginal decrease of less than 1% from April and a 9% fall compared with May 2024.
These patterns suggest a mixed picture in the property market, with short-term movement influenced by fiscal policy changes and longer-term trends showing subdued activity across both residential and commercial sectors.
Industry reactions
Tom Bill, head of UK residential research at Knight Frank, commented, “Housing transactions are still clambering back to normal levels after the stamp duty cliff edge earlier this year. May’s figure was 17% below the five-year average for the month, which is an improvement on a drop of 35% in April.
"One thing slowing down the process is the vast quantity of stock on the market, which means asking prices need to be kept realistic to trigger activity. At this halfway point in the year, the tariff and stamp duty chaos are largely behind us, but tax rise speculation ahead of the Budget could see some buyer hesitation creep back in.”
Richard Pike, chief sales and marketing officer at Phoebus Software, says, “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, comments, “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 per cent.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, said, “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 are 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 growth as the economy feels stagnant and at risk of sliding into austerity."
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.
“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 to take on bigger mortgages in the coming months."
