Latest figures show return to trend after Stamp Duty-driven fluctuations
Residential property transactions in the UK saw a significant rebound in May 2025, according to the latest HM Revenue & Customs (HMRC) data.
Seasonally adjusted figures show a 25% increase in completed deals compared to April, rising from 65,110 to 81,470. Non-seasonally adjusted data for May showed an even larger jump, up 42% from the previous month.
The increase follows a sharp drop in April, which analysts say was due to buyers rushing to complete purchases in March ahead of changes to Stamp Duty Land Tax (SDLT). On April 1, the nil-rate threshold in England and Northern Ireland was lowered from £250,000 back to £125,000. The first-time buyer threshold was also reduced from £425,000 to £300,000.
Meanwhile, non-residential transactions saw modest gains. Seasonally adjusted figures for May were up 4% compared to April, although still down 5% year-on-year. Unadjusted non-residential transactions were relatively flat, declining less than 1% from April.
Industry leaders say the May rebound was expected, given the earlier slowdown.
“After a quieter April, today’s data showing a rebound in property transactions for May is no surprise,” said Richard Pike (pictured left), chief sales and marketing officer at mortgage servicing provider Phoebus Software. “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.”
Pike noted that stable interest rates and favourable swap rates are helping both lenders and buyers plan more confidently. He also highlighted the role of high loan-to-value products in stimulating demand, particularly among first-time buyers.
Hamza Behzad (pictured centre), business development director at mortgage software provider finova, described the data as “optimistic news,” but cautioned that buyers still face challenges.
“Although overall transaction volumes did not match the heady highs of March… the market is still rife with high LTV options, which will only ramp up competition and create windows of opportunity,” he said.
Behzad added that lenders should focus on innovation to remain competitive, stressing the importance of speed and efficiency in product delivery.
Nathan Emerson (pictured right), chief executive of industry body Propertymark, welcomed the monthly rise but pointed to the wider impact of tax changes.
“It is extremely positive to see an enhanced magnitude of transactions month-on-month,” he said. “But considering new Stamp Duty thresholds… it’s understandable we have seen a considerable drop in housing transactions year-on-year.”
Emerson added that a growing number of listings has supported market activity, noting a nearly 15% increase in property supply compared to last year.
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