The number of residential real estate transactions in May totaled 114,940.
UK property transactions fell in May as the end of the stamp duty holiday could cool the housing market.
The Office for National Statistics (ONS) confirmed that the number of residential property transactions totaled 114,940 last month, a decrease of 3.9% compared to the month before in April 2021.
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House prices have soared over the past 12 months after Rishi Sunak introduced a stamp duty holiday.
But evidence suggests sales are starting to slow as the end of the policy approaches.
Sam Mitchell, CEO of online estate agency Strike, said: “Despite May’s property trading ease for the second month in a row, buyers and sellers are still struggling to make deals ahead of the year-end stamp duty holiday deadline. “We are scrambling to complete the project and remain well above pre-pandemic levels.” This month,” Mitchell said.
“With only days left until the stamp duty holiday deadline, we expect property transactions to surge, similar to the frenzy we witnessed in March before the original deadline. As one might expect, there are still plenty of factors to keep the market buoyant into the autumn, with the combination of an easing period until October, government lending schemes and low interest rates.”
“Furthermore, with the extension of lockdown restrictions announced last week, buyers will no doubt be considering homes that suit their new lifestyle, whether that be in locations with more green space or closer to family. I guess.”
John Eastgate, managing director of real estate finance at Shawbrook Bank, said: “Therefore, the level of remortgaging will continue to rise as homeowners and investors choose to fix and secure a few more years of low interest rates. It is also likely that prices will rise.”
