The number of residential property transactions in May increased by 17% year-on-year to 91,290, HM Revenue and Customs (HMRC) has revealed.

In its monthly property transactions commentary, HMRC revealed that this figure also increased by 2% month-on-month.

This follows on from a monthly drop of 9% between March and April.

The number of non-residential property transactions also increased by 6% year-on-year and 1% monthly in May, standing at 10,130.

HMRC’s monthly estimates are based on its own records as well as those of Revenue Scotland and the Welsh Revenue Authority, for Stamp Duty Land Tax (SDLT), Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) in each of the three nations respectively.

Chair of the Open Property Data Association, Maria Harris, said: "It’s very promising to see that UK residential transactions have bounced back in May after a dip in April. The recent fall in inflation to at last meet the Government’s target is also a reason for optimism and we can dare to hope that the Bank of England might lower interest rates by the Autumn.

"But housing transaction volumes rely heavily on consumer confidence. No matter which party forms the next Government after next week’s General Election, we will continue to deal with a broken housing market unless new ministers tackle this urgently.

"Top of the list should be digitising our property data and resolving the notoriously sluggish homebuying process. Sharing digital property information across the housing market is a vital first step towards improving customer confidence in the homebuying and moving process and will slash contract exchange times significantly, contributing millions to GDP."

National account manager at Saffron for Intermediaries, Phil Lawford, added: "Today’s figures reflect renewed consumer confidence in a resilient mortgage market. Inflation has now hit the Bank of England’s 2% target, and borrowers are eagerly awaiting a base rate cut which could see mortgage rates fall further.

"Meanwhile, all eyes are on the election which among other things, will partly define the course that the housing industry sets on over the next five-years. Whatever the result, the next government needs to think beyond the next electoral-term and work on a strategy that will set the industry up for a sustainable and healthy future in the long-term.

"While there is a lot to be positive about, the market continues to move at pace, and so it is always essential for borrowers speak to a professional financial adviser who can help them navigate the range of options available at this time."

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