Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Buyer's Market Helps Moderate UK Property Prices Amid Uncertainty

UK residential property transactions fell by 2% in May 2026 compared to April, according to the latest HMRC figures. This shift has strengthened buyers' negotiating power and is helping to keep house price growth under control.

HMRC reported 98,450 seasonally adjusted residential transactions in May, which is 17% higher than the same month last year. The annual increase is attributed to unusually weak activity in April and May 2025, following changes to Stamp Duty Land Tax thresholds that prompted many buyers to complete purchases earlier in March 2025. On a non-seasonally adjusted basis, there were 92,390 transactions in May, up 7% from April and 13% higher than a year earlier.

Industry observers note that the current market balance is moderating house price growth, with buyers—especially first-time buyers—benefiting from increased negotiating power. Sellers are being encouraged to price homes more realistically as supply continues to outpace demand in many areas.

Despite the modest monthly decline in transactions, market activity has remained resilient amid ongoing economic and political uncertainty. The Bank of England's decision to hold the base rate for a fourth consecutive meeting, along with lower mortgage rates, has supported affordability and buyer confidence.

Letting agents and inventory clerks should note that buyers are proceeding with transactions rather than delaying moves, and negotiations are taking longer as buyers remain selective. The steady interest rate environment and falling mortgage rates are assisting borrowers and supporting continued activity in the market.