UK residential property transactions bounced back in May 2025, following a subdued April, as landlords and buyers rushed to complete purchases after the government’s stamp duty changes came into effect on 1 April.
According to new HMRC data, 81,470 residential transactions were recorded in May (seasonally adjusted), marking a 25% increase on April figures. While still 12% below May 2024 levels, the month-on-month recovery offers a timely boost for property professionals navigating tighter margins and shifting tax rules.
Stamp duty reset triggered brief slowdown
April’s fall in activity was no coincidence. The government’s decision to reverse pandemic-era stamp duty reliefs caused a temporary slump as buyers brought forward completions into March. From 1 April 2025, the nil-rate threshold fell from £250,000 to £125,000, and the first-time buyer threshold dropped from £425,000 to £300,000.
That shift explains the transactional dip in April — and the rebound in May. Nathan Emerson, CEO of Propertymark, described the pattern clearly: “The housing market saw a mass rush of people working at pace to complete on their housing purchase to avoid any increased Stamp Duty liability.”
Emerson added: “It is extremely positive to see an enhanced magnitude of transactions month-on-month… we have seen positivity regarding the number of properties coming to the market, which has delivered a year-on-year increase of almost 15 per cent.”
Non-residential transactions also crept upward. Seasonally adjusted figures for May rose by 4% compared to April, though they remain 5% lower year-on-year. The non-seasonally adjusted non-residential data was effectively flat, down less than 1%.
Zoopla says market on track
Despite the year-on-year dip, industry analysts believe the market is stabilising — and more households are planning moves in the second half of the year.
Richard Donnell, Executive Director at Zoopla, said: “The stamp duty holiday continues to impact transaction volumes with 13 per cent fewer sales in May 2025 compared to last year as buyers bought forward sales ahead of the deadline.”
However, Donnell sees reason for optimism. “Our leading data shows new sales are being agreed at the fastest rate for four years… the market remains on track for 1.15m sales in 2025, up five per cent on 2024 levels.”
This return to pre-pandemic momentum is crucial for landlords considering new acquisitions, refinancing, or portfolio expansion. The combination of stabilising prices, greater property availability, and predictable policy conditions offers a window of opportunity — especially for investors able to act before any further regulatory shifts.
Opportunities ahead
For landlords, the May rebound signals more than a blip. It reflects pent-up demand, a more balanced market, and growing confidence — even with higher stamp duty thresholds now in force. For those considering buying or selling in 2025, this data underscores the value of timing: acting too late may mean paying more, while careful planning can help investors stay one step ahead.
The question is: will this uptick last, or is it just a spring bounce? Either way, landlords who keep an eye on transaction volumes, local supply, and political signals will be best placed to seize opportunities as the year unfolds.
With Zoopla forecasting 1.15 million sales in 2025 — up from 1.09 million in 2024 — and listings growing steadily, the months ahead could well be more stable than some expected.
UK monthly property transactions commentary was updated today.
