Sign in Subscribe
Housing

UK Home Sales Recover with 25% Month-on-Month Increase in May

Strategic Insights

— 2 min read

UK home sales rebounded in May, with provisional data showing an increase of 25% compared to April, following a plunge in sales at the end of the stamp duty holiday. The HM Revenue & Customs data revealed that around 81,470 home sales were recorded in May, which is a 12% fall compared to May 2024. Experts attribute the surge in sales to buyers rushing to complete deals before the stamp duty deadline, as well as decreased transactions in April being brought forward into March. As the market continues to recover from the stamp duty cliff-edge, experts remain optimistic about the second half of the year, citing summer demand and a shift in conditions in buyers' favour.

Key Takeaways:

  • UK home sales increased by 25% month-on-month in May, with 81,470 provisional transactions recorded.
  • The surge in sales follows a plunge in April, which was likely due to buyers rushing to complete deals before the stamp duty deadline.
  • Experts attribute the increase in sales to decreased transactions in April being brought forward into March.
  • Tom Bill, head of UK residential research at Knight Frank, stated that housing transactions are still recovering from the stamp duty cliff-edge earlier this year.
  • Nick Leeming, chair of Jackson-Stops, emphasized the importance of sellers pricing their properties sensibly to attract buyers.
  • Nathan Emerson, chief executive officer of Propertymark, noted the positivity surrounding the number of properties coming to the market.
  • Richard Donnell, executive director at Zoopla, stated that new sales are being agreed at the fastest rate for four years, with the stamp duty changes in the distant past for home buyers.
  • Amy Reynolds, head of sales at London-based estate agent Antony Roberts, highlighted the rise in first-time buyer activity and the increasing desire to buy in core price ranges.

Statistics:

  • 81,470: Provisional home sales recorded in May (HM Revenue & Customs)
  • 25%: Month-on-month increase in home sales in May (HM Revenue & Customs)
  • 12%: Fall in home sales compared to May 2024 (HM Revenue & Customs)
  • 1.15 million: Sales expected in 2025, up 5% on 2024 levels (Richard Donnell, executive director at Zoopla)
  • 1.5%: Interest rate expected to decrease this year (Mark Harris, chief executive of SPF Private Clients)
  • 1 month: Expected time for mortgage rates to adjust to swap rate changes (Mark Harris, chief executive of SPF Private Clients)

Sources:

  • (HM Revenue & Customs)
  • Tom Bill, head of UK residential research at Knight Frank
  • Nick Leeming, chair of Jackson-Stops
  • Nathan Emerson, chief executive officer of Propertymark
  • Richard Donnell, executive director at Zoopla
  • Amy Reynolds, head of sales at London-based estate agent Antony Roberts
  • Mark Harris, chief executive of mortgage broker SPF Private Clients
  • Tony Hall, head of business development at Saffron for Intermediaries
  • Kevin Roberts, managing director of L&G's mortgage services business

Read more