Residential property transactions in May 2025 were 12% lower than May 2024 and 25% higher than April 2025.

For the same period, non-residential transactions decreased by 5% from May 2024 but were 4% higher than April 2025.

Commenting on the latest government figures for monthly property transactions, Stacy Eden, Partner and Head of Real Estate at RSM UK, said: "Residential property transactions in May were still artificially low following March’s rush to beat the reduction in stamp duty land tax (SDLT) bands from 1 April 2025. However, the increase from April was expected, as the sector adapts to SDLT changes, with more optimism that transactions will grow from the current 80,000 level closer to normal levels of 100,000. As interest rates continue to fall, this should help with borrowing costs and affordability, which should support a rise in housing transactions, despite challenges with employment levels and wage growth.

“But it is concerning that the level of commercial transactions dropped to 19,140 for the first two months of the financial year. This is the lowest level in 10 years, with the exception of the pandemic, and is 10% lower than normal April and May transaction numbers. This will likely be due to global uncertainties, particularly around US tariff policy, geopolitical conflict, higher oil prices and higher tax burdens including employers’ National Insurance contributions and IHT changes. Against a backdrop of mediocre UK and global growth, tax changes could also be holding overseas and domestic investors back from investing in UK real estate.”

He added: “In recent weeks, the sector has been encouraged by the government’s focus and increased investment in housebuilding and infrastructure in the Spending Review and Infrastructure Strategy, but there are still concerns that transactions will fall short of the government’s 1.5m target. However, anticipated capital growth and rising rents will bring buoyancy to the residential sector.”