Home transactions in May got here in at 81,470, 25% larger than final month, however 12% decrease than a yr in the past, in line with seasonally-adjusted estimates from HMRC.
The information comes as first-time patrons and homemovers rushed to finish transactions to profit from decrease stamp responsibility thresholds that fell again to pre-mini-Budget ranges on 1 April.
In March, FTB and homemover completions jumped by 113% and 140%, respectively, in comparison with a yr in the past, in line with information from UK Finance.
SPF Private Clients chief government Mark Harris says: “Transaction numbers have risen once more as base charge reductions encourage exercise and allow debtors to plan forward with extra confidence.
“We anticipate rates of interest to fall farther from their present degree though the tempo and dimension of cuts could also be extra gradual than the markets thought just a few weeks in the past on account of larger inflation and the broader financial image.
“In the meantime, lenders proceed to trim their mortgage charges as swap charges fall. Easing of standards must also allow debtors to tackle larger mortgages in coming months.”
Phoebus Software chief gross sales and advertising officer Richard Pike provides: “After a quieter April, immediately’s information exhibiting a rebound in property transactions for May is not any shock.
“April exercise was artificially suppressed following the push to finish in March forward of the stamp responsibility deadline, so what we’re seeing now could be a return to a extra secure pattern.
“Encouragingly, rates of interest have now settled at a degree the place patrons could make clearer, extra assured choices about what they’ll afford.
“Swap charges stay beneficial, and this stability is permitting lenders and debtors alike to plan with better certainty.
“There’s an actual effort from the business to spice up the market, significantly on the first-time purchaser finish, the place efforts like 95% and even 100% mortgages are serving to to stimulate exercise.
“But client confidence remains to be the linchpin and with international financial pressures looming, resembling the top of Trump’s tariff pause on 9 July, the business might want to proceed to work exhausting to take care of this constructive trajectory.”
Saffron for Intermediaries head of enterprise growth Tony Hall factors out: “Today’s transactions information for May displays a latest enhance in confidence throughout the housing market after final month’s rate of interest lower and a gradual easing of inflation.
“Many patrons who had beforehand paused their plans at the moment are returning to the market, inspired by better mortgage alternative and elevated provide.
“This shift helps to unlock pent-up demand and push transaction volumes larger.
“Looking forward, there are causes to stay optimistic. Although rates of interest had been held at 4.25% final Thursday, the federal government’s £39bn pledge to spice up reasonably priced housing – introduced in Chancellor Rachel Reeves’ spending assessment earlier this month – might be welcome information for a lot of.
“It indicators that long-term housing challenges are being taken critically, and with summer season demand constructing and extra properties coming to market, situations are steadily shifting in patrons’ favour as we transfer into the second half of the yr.”
