UK home sales in May 2026 surged 17% compared to the same month in 2025, according to HM Revenue and Customs (HMRC) figures, though activity edged down 2% from April 2026. An estimated 98,450 home sales were completed across the UK in May, reflecting a market still adjusting after last year's stamp duty changes.
Annual Increase Driven by Low Base
HMRC attributed the sharp annual rise to lower transaction levels in April and May 2025, when sales slumped after stamp duty thresholds were tightened. In early 2025, buyers rushed to complete purchases before the deadline, causing a bunching effect that inflated pre-change figures and depressed subsequent months. Stamp duty applies in England and Northern Ireland.
Richard Donnell, executive director at Zoopla, explained 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. “Looking ahead, while there is a healthy pipeline of sales from recent months, higher mortgage rates over April have hit new sales agreed.” He advised sellers to “price carefully to attract demand if they want to sell their home this year.”
Market Sentiment and Buyer Behaviour
Despite the monthly dip, property professionals report resilient demand for well-priced homes. Nathan Emerson, CEO of Propertymark, noted: “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, added that “buyers and sellers are mostly adapting to changing circumstances and continuing to proceed with their transactions, rather than stepping back and delaying decisions.”
Underlying Support from Life-Event Movers
Iain McKenzie, CEO of The Guild of Property Professionals, emphasised the role of non-discretionary buyers. “Crucially, 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 Rate Outlook
Mark Harris, chief executive of mortgage broker SPF Private Clients, offered a positive note on borrowing costs: “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.”
