Home sales jump by a quarter month on month in May following April slump

The number of home sales picked up by a quarter month on month in May following a plunge in April as a stamp duty holiday ended, according to HM Revenue and Customs (HMRC) figures.

Across the UK, around 81,470 home sales were recorded provisionally in May, which was 25% higher than April but a 12% fall compared with May 2024.

Stamp duty discounts became less generous for some homebuyers from April, with people rushing to complete deals before the deadline. Stamp duty applies in England and Northern Ireland.

HMRC’s report said: “The increase in transactions for May follows decreased transactions for April, which were likely brought forward into March to take advantage of the higher thresholds.”

Tom Bill, head of UK residential research at Knight Frank, said: “Housing transactions are still clambering back to normal levels after the stamp duty cliff-edge earlier this year.”

He added: “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.”

Nick Leeming, chairman of Jackson-Stops, said: “In the current market, it’s essential for sellers to remember there is always demand for a sensibly-priced property.”

Nathan Emerson, chief executive officer of property professionals’ body Propertymark, said: “We have seen positivity regarding the number of properties coming to the market.”

Richard Donnell, executive director at Zoopla, said data from the website indicates that “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”.

He said: “The market remains on track for 1.15 million sales in 2025, up 5% on 2024 levels as more households move home.”

Amy Reynolds, head of sales at London-based estate agent 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 being driven by pressures in the rental market, where demand far exceeds supply and rental listings have dropped sharply.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Transaction numbers have risen again as (Bank of England) 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 take on bigger mortgages in coming months.”

Several mortgage lenders have recently announced changes to their affordability criteria, enabling some borrowers to take out bigger loans.

This follows clarification from the Financial Conduct Authority (FCA), which also launched a discussion paper this week inviting debate on the future of the mortgage market to help support borrowers.

On Friday, Santander UK said it has introduced improved affordability rates on newbuild properties, which could potentially allow some customers purchasing a newbuild home to borrow thousands of pounds more than they could previously.

The updated calculations consider features particular to owning newbuild properties, including the potential for lower running costs compared with an older property.

Tony Hall, head of business development at Saffron for Intermediaries, said: “Looking ahead, there are reasons to remain optimistic.

“With summer demand building and more homes coming to market, conditions are gradually shifting in buyers’ favour as we move into the second half of the year.”

Kevin Roberts, managing director of L&G’s mortgage services business, said: “Today’s figures are encouraging for the industry, especially after the flurry of activity we saw in March to beat the stamp duty changes deadline.”

Iain McKenzie, chief executive of the Guild of Property Professionals, said: “The rush to complete in March created an artificial lull, but we are now seeing the return of genuine, underlying demand.”

He continued: “The recent (Bank of England base rate) cut to 4.25% has provided a welcome boost to buyer affordability.

“However, the most significant catalyst is the relaxation of affordability criteria from lenders. By enabling buyers to borrow more and stress-testing against more realistic rates, lenders have unlocked a new wave of purchasing power, playing a crucial role in driving these transactions forward.”

He added: “Buyers now have more choice than they’ve had for years, which is helping to keep price growth sustainable.”

Sarah Coles, head of personal finance at Hargreaves Lansdown, said first-time buyers may find some opportunities to bag a bargain.

She said: “For those who are still saving, and frustrated they might miss this window, there are still things you can do to put yourself in a better position when you come to buy.

“If you’re aged 18 to 39, saving for a property worth £450,000 or less, and have at least a year until you plan to buy, you can take advantage of the Lifetime Isa, so that the first £4,000 you save each year can be topped up by the Government by an extra £1,000.”

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