UK Residential Property Transactions Rise 25% in May Despite Annual Decline

UK residential property transactions showed a notable recovery in May 2025, rising by approximately 25% from April, with seasonally adjusted completions reaching 81,470, according to HMRC data. Despite this monthly increase, transactions remained about 12-13% lower compared to May 2024, reflecting ongoing market cooling. The surge in activity in May followed a dip in April caused by the return of the Stamp Duty Land Tax (SDLT) nil-rate threshold to £125,000 from £250,000, which led many buyers to accelerate purchases before the March deadline. Industry experts highlighted that the market's resilience is supported by recent interest rate cuts, easing inflation, and government measures such as a £39 billion affordable housing pledge, which are boosting buyer confidence and aiding demand, especially among first-time buyers. However, challenges remain including longer transaction completion times and uncertainty caused by global economic pressures, such as the end of President Trump's tariff pause. Overall, while the property market shows signs of stabilizing with growing buyer interest, it continues to operate below pre-pandemic activity levels.