Residential property transactions across the UK fell by 13% in May compared to last year, new HMRC data has shown.

May’s non-seasonally adjusted total reached 80,530 in May, a figure 42% up on April’s level, however.

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.

According to HMRC’s latest commentary, the latest numbers were affected by the changes in SDLT rates in England and Northern Ireland. On 1 April, the nil-rate threshold, which had been £250,000, returned to the previous level of £125,000, while the nil-rate threshold for first-time buyers also decreased from £425,000 to £300,000.

HMRC highlighted that the increase in transactions for May followed decreased transactions for April, agreements which were likely brought forward into March to take advantage of the higher thresholds.

For non-residential property, HMRC’s non-seasonally adjusted estimate for May fell to 9,520. This was 9% lower than May last year, as well as 1% down from April’s tally.

“Property transactions rebalanced in May after declining in April, in part due to the stamp duty deadline which created a race to the finish for homeowners looking to maximise savings,” director of second charge mortgages at Pepper Money, Ryan McGrath, commented.

“Despite an uptick in transactions month-on-month, with many homeowners still locked into historically low mortgage rates, we’re seeing a clear shift in behaviour.”

Managing director of capital markets and finance at LiveMore, Simon Webb, added: “The rise in property transactions in May is a positive signal that market confidence is gradually returning. A subdued April was unsurprising following the March stamp duty deadline rush, but nevertheless it’s encouraging to see stability returning to the housing market.

“With interest rates no longer in flux, we’re seeing growing confidence among borrowers who can now plan ahead with greater certainty.”

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