House sales fell back by nearly 4% month-on-month in May – HMRC

An estimated 114,940 transactions took place across the UK in May, which was 3.9% lower than April.

Aerial view of houses (PA Wire)

House sales fell back by nearly 4% between April and May, according to figures from HM Revenue and Customs (HMRC).

An estimated 114,940 transactions took place across the UK in May, which was 3.9% lower than April.

However the total was still 138.2% higher than May 2020 – a time when house sales were down by around 50% year-on-year due to the impacts of the coronavirus pandemic.

A stamp duty holiday was due to end in March but was extended and will now be tapered into the autumn, before returning to normal levels.

On the ground, we have seen buying and selling resume and the market return to the underlying trend of growth, albeit at a lower level than before

Jeremy Leaf, north London estate agent

Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors (Rics) said: “These figures are a little dated, reflecting a market pausing in reaction to the anticipated cut-off in the stamp duty concession.

“On the ground, we have seen buying and selling resume and the market return to the underlying trend of growth, albeit at a lower level than before, boosted by the low cost of money and stock shortages particularly.

“The stamp duty holiday has proven to be an important factor in helping, in particular, second-steppers and buyers of more expensive properties.”