UK home sales in May 2026 jumped 17% compared to the same month in 2025, according to HM Revenue and Customs (HMRC) figures. An estimated 98,450 transactions were completed, marking a 2% decline from April 2026.
Annual Increase Reflects Stamp Duty Distortions
HMRC attributed the sharp annual rise to a low base effect: transaction volumes fell sharply in April and May 2025 after stamp duty thresholds were tightened. Buyers had rushed to complete purchases before the previous, more generous reliefs expired. Stamp duty applies in England and Northern Ireland.
Market Activity Beginning to Slow
Richard Donnell, executive director at Zoopla, noted that housing transactions reflect sales agreed five to six months earlier. “This latest data shows sales completions starting to slow in May compared to April, which reflects the impact of last year’s autumn budget on sales,” he said. He added that higher mortgage rates in April had depressed new sales agreements, and sellers need to price carefully to attract demand.
Agents Report Strong Interest for Well-Priced Homes
Nathan Emerson, CEO of property professionals’ body Propertymark, said: “Our member agents are reporting that well-priced homes continue to attract strong interest, particularly where there is a good choice of stock available.” Jason Tebb, president of OnTheMarket, observed that buyers and sellers are adapting to changing circumstances and proceeding with transactions rather than delaying.
Non-Discretionary Movers Underpin Market
Iain McKenzie, CEO of The Guild of Property Professionals, emphasised that “the non-discretionary mover continues to underpin the market. Annually, a substantial portion of transactions are driven by unavoidable life events and those movers are not waiting for the perfect conditions.”
Mortgage Rates and Borrower Outlook
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “With the Bank of England holding base rate for now, mortgage lenders continue to trim their rates in light of improving funding conditions, which is good news for borrowers.” However, Sarah Coles, head of personal finance at AJ Bell, warned that “middle-of-the-road property sales in May are likely to herald a swerve into the slow lane in the coming months,” advising buyers to build savings as a safety net.
Absence of Seasonal Bounce
Tom Bill, head of UK residential research at Knight Frank, highlighted that “the clearest signal from today’s data is the absence of a seasonal bounce in the housing market, with transactions falling 2% between April and May at precisely the time of year when they should be rising.”
