The data comes as first-time buyers and homemovers rushed to complete transactions to benefit from lower stamp duty thresholds that fell back to pre-mini-Budget levels on 1 April. 

In March, FTB and homemover completions jumped by 113% and 140%, respectively, compared to a year ago, according to data from UK Finance. 

SPF Private Clients chief executive Mark Harris says: “Transaction numbers have risen again as base rate reductions encourage activity and enable borrowers to plan ahead with more confidence. 

“We expect interest rates to fall further from their current level although the pace and size of cuts may be more gradual than the markets thought only a few weeks ago as a result of higher inflation and the wider economic picture. 

“In the meantime, lenders continue to trim their mortgage rates as swap rates fall. Easing of criteria should also enable borrowers to take on bigger mortgages in coming months.” 

Phoebus Software chief sales and marketing officer Richard Pike adds: “After a quieter April, today’s data showing a rebound in property transactions for May is no surprise.  

“April activity was artificially suppressed following the rush to complete in March ahead of the stamp duty deadline, so what we’re seeing now is a return to a more stable trend. 

“Encouragingly, interest rates have now settled at a level where buyers can make clearer, more confident decisions about what they can afford.  

“Swap rates remain favourable, and this stability is allowing lenders and borrowers alike to plan with greater certainty.  

“There’s a real effort from the industry to boost the market, particularly at the first-time buyer end, where efforts like 95% and even 100% mortgages are helping to stimulate activity.

“But consumer confidence is still the linchpin and with global economic pressures looming, such as the end of Trump’s tariff pause on 9 July, the industry will need to continue to work hard to maintain this positive trajectory.” 

Saffron for Intermediaries head of business development Tony Hall points out: “Today’s transactions data for May reflects a recent boost in confidence across the housing market after last month’s interest rate cut and a steady easing of inflation.  

“Many buyers who had previously paused their plans are now returning to the market, encouraged by greater mortgage choice and increased supply.  

“This shift is helping to unlock pent-up demand and push transaction volumes higher. 

“Looking ahead, there are reasons to remain optimistic. Although interest rates were held at 4.25% last Thursday, the government’s £39bn pledge to boost affordable housing – announced in Chancellor Rachel Reeves’ spending review earlier this month – will be welcome news for many. 

“It signals that long-term housing challenges are being taken seriously, and with summer demand building and more homes coming to market, conditions are gradually shifting in buyers’ favour as we move into the second half of the year.”