The property market bounced back with a jump in sales last month, but prices remain sluggish, according to the latest industry statistics.
Sales were up 25% in May from the previous month, the HMRC transactions data bulletin shows.
The seasonally adjusted estimate of the number of UK residential transactions in May was 81,470, which was though still 12% lower than May last year.
And the non-seasonally adjusted number of UK residential transactions in May was 80,530, 42% higher than April, but 13% lower than May 2024, HMRC says.
Prices slow
Meanwhile, a newly-released Zoopla HPI reveals that house price growth slowed to 1.4% as the number of homes for sale increased 14%.
Sales activity continued to run at the fastest rate for four years, with more homes on the market meaning more buyers looking to secure a sale, Zoopla says.
And house price growth is higher (2.7%) in markets below £200,000.
Zoopla says the average estate agent now has 37 homes for sale, compared to 32 last year.
The market remains on track for 5 per cent more sales in 2025.”
Richard Donnell, Executive Director at Zoopla, says: “The number of buyers and sellers agreeing home sales continues to increase year-on-year, demonstrating a continued desire of more households to move home in 2025.
“Improving mortgage affordability will support buying power in the second half of the year,” he says.
“The market remains on track for 5 per cent more sales in 2025, but house price inflation will remain between 1 and 2 per cent.”
Industry reaction
Sarah Cartlidge, Branch Manager at Fraser Reeves in the North West, says: “We’re delighted to be seeing increased vendor confidence this year, with more properties coming on to the market than 2024, however, property price remains key to agreeing a sale.”
Amy Reynolds, Head of Sales at Richmond estate agency Antony Roberts, says: “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,” she says.
“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.”
Mark Harris, CEO at 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.”
Jason Tebb, President at OnTheMarket, says: “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,” he says.
“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.”
Tom Bill, Head of UK Residential Research at Knight Frank, says: “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,” he says.
“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.”
