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

Residential Property Sales Drop 2% in May Amid Market Uncertainty

Sales of UK residential property fell by 2% in May 2026 compared to the previous month, according to HMRC figures reported by Mortgage Solutions. The number of transactions dropped from 100,440 in April to 98,450 in May.

Despite the monthly decline, residential property sales were 17% higher year-on-year. This annual increase follows a period of lower transaction levels in April and May 2025, when changes to stamp duty thresholds led to a rush of buyers completing purchases before the end of March 2025.

Andrew Lloyd, managing director of property data firm Search Acumen, noted that the recent decline in sales indicates falling market confidence and weaker deal flow. He highlighted that transaction volumes below 100,000 suggest underlying market pressures are becoming more apparent, with affordability constraints, cost-of-living pressures, and higher mortgage rates limiting growth.

Forward-looking indicators referenced in the report include a Zoopla finding that buyer demand has fallen by 15% and sales agreed are down 7%. The Bank of England reported 56,200 mortgages approved for house purchases in May, down from 66,000 in April, marking the lowest level since the end of 2023.

For letting agents and inventory clerks, these figures suggest a slower pace in the residential property market, with fewer transactions and longer completion times. Ongoing economic and political uncertainty, as well as affordability challenges, continue to impact market activity.