UK residential property transactions fell for a second straight month in May, with seasonally adjusted sales dropping 2 percent to 98,450, according to HMRC’s latest monthly figures.
The decline follows a 3 percent fall in April and leaves activity below the level many in the market would normally expect at this point in the year. While transactions were still 17 percent higher than a year earlier, that comparison is distorted by last year’s stamp duty changes and does not change the softer month-to-month picture now emerging.
For landlords, the latest release matters because transaction volumes often give a clearer read on market confidence than prices alone. A slower sales market can improve buying conditions for investors in some areas, but it can also point to weaker buyer commitment, longer disposal times and a more cautious refinancing backdrop.
May breaks the usual seasonal pattern
HMRC said seasonally adjusted residential transactions dropped from 100,440 in April to 98,450 in May. Non-seasonally adjusted sales were higher than April, but the broader signal is still one of fading momentum rather than a spring rebound.
That matters because late spring is usually a period when activity strengthens, not weakens. Instead, the market is showing signs of hesitation after rate volatility, political uncertainty and a more price-sensitive buyer base. For landlords thinking about acquisitions, that can create more room to negotiate. For landlords trying to sell, it may mean sharper pricing discipline and slower decision-making from buyers.
This follows Landlord Knowledge’s March report on falling transaction volumes, which flagged how global tensions and mortgage pricing were starting to drag on deals. The latest HMRC data suggests that pressure has not cleared and that the sales market is still struggling to build momentum.
Why transaction data matters to landlords
Prices can stay flat or edge up even while turnover weakens, especially if sellers hold out and fewer deals complete. Transaction data is different because it shows whether people are actually committing and getting sales over the line. For landlords, that can influence everything from exit timing to whether a buyer’s market is opening up in a target area.
There is also a supply angle. If owner-occupier demand stays cautious while more landlords look to sell, stock could build more quickly in some local markets. That would not automatically mean falling prices everywhere, but it could widen the gap between well-priced homes that move and over-optimistic listings that sit. The latest HMRC monthly property transactions commentary gives landlords a timely check on that underlying market pace.
What this means for landlords
- If you are buying: a slower sales market may improve your negotiating position, especially where stock is building.
- If you are selling: expect buyers to be more price-sensitive and less willing to chase.
- Watch for: whether June and July data confirm a wider summer slowdown or show activity stabilising.
- Bottom line: weaker turnover can open opportunities for buyers, but it also raises the risk of longer, more fragile deals.
Editor’s view
Landlords should not dismiss transactions as an owner-occupier metric. When deal numbers soften in what should be a stronger seasonal window, it usually tells you something useful about sentiment, negotiation power and how quickly capital can really move.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 01 July 2026
Sources: HM Revenue and Customs
Related reading: Property transactions fall 6% as Middle East conflict clouds market outlook
