The number of house sales agreed in May reached a four-year high, as the figure increased by 6% year-on-year, Zoopla has found.
The residential property, data and insight company said that the increase comes as the market rebounded after the Easter lull and the initial reaction to stamp duty relief ending.
The latest data also revealed that 13% more sellers listed their homes for sale in the year to May.
The firm’s latest house price index revealed in the year to April, house prices increased by 1.6%, with the average house price reaching £268,200.
However, month-on-month, house prices remained flat.
Zoopla said: "The shift to higher mortgage rates over the last three years has impacted growth rates for housing sales and mortgage applications. Sales declined sharply in 2022/23 as mortgage rates reached 6%. The growth in sales rebounded over 2024 as mortgage rates fell, which also boosted demand for mortgages.
"However, the growth in sales and mortgage approvals has slowed in recent months to more sustainable levels. Sales have started to increase once again as confidence improves and those using a mortgage are able to borrow up to 20% more due to changes in affordability testing."
In England, the North West was the best performing region, with prices increasing by 3% year-on-year.
Northern Ireland saw prices increase by 6.5% in this period, while Scotland and Wales recorded respective increases of 2.9% and 2%.
Looking ahead, Zoopla concluded: "Strong competition in the mortgage market and less stringent affordability testing is set to support buyer demand and sales volumes over the second half of 2025.
"The different trends in supply and demand across the country have important implications for how sellers approach the pricing of their homes if they are serious about selling in 2025. Buyers also need to adapt to local market conditions in how they pitch offers to buy.
"Overall, the housing market is well set for 5% more sales in 2025 compared to last year, with just enough house price inflation to keep sellers and buyers entering the market and making bids for homes."
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