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

UK Housing Transactions Fall for Second Month, HMRC Data Shows

UK residential property transactions fell by 2% in May, marking the second consecutive monthly decline, according to HM Revenue and Customs (HMRC) data reported by PropertyWire. Seasonally adjusted residential transactions dropped from 100,440 in April to 98,450 in May.

The figures show that May’s transactions were 17% higher than in May 2025, though PropertyWire notes that comparisons are complicated by the previous year’s Stamp Duty threshold changes, which ended in April. Non-seasonally adjusted residential transactions increased by 7% in May compared to April. In the previous month, transactions had fallen by 3%, from 103,910 in March to 101,030 in April.

Industry commentators cited by PropertyWire highlighted the absence of the usual seasonal increase in activity. The report notes that May’s transaction figure sits on the five-year average and just below the ten-year average. May mortgage approvals were reported to have fallen 15% month-on-month and 11% year-on-year.

Richard Donnell, Executive Director at Zoopla, stated that housing transactions reflect sales agreed five to six months earlier. He forecast that completed transactions would be 6-8% lower than last year, a revision from the 2% drop previously predicted.

Despite the overall decline, some industry figures pointed to positive signs for borrowers. Non-seasonally adjusted figures were described as “encouraging,” with strong interest in well-priced homes where stock is available. Inflation was reported to be holding at 2.8%, and the Bank of England maintained the base rate at 3.75%. Nationwide was noted to have cut rates three times in June, and mortgage lenders were reported to be trimming rates due to improving funding conditions.

Regional variations were also highlighted, with some areas seeing competitive interest in well-priced family homes, particularly from equity-rich or cash buyers. The market was described as favouring buyers, with steady interest rates and falling mortgage costs assisting affordability.