UK home sales hit three-year high, defying slowdown fears

[LONDON] Britain’s property market saw its busiest month in over three years in May, defying expectations for a slowdown after a tax break for buyers expired.

Property website Rightmove said home sales were up 6 per cent year on year last month, which is one of the most active for home buying. It was the strongest May for sales in four years and the best for any month since March 2022.

The picture was more nuanced in London: While sections including Barnet, Kingston and Tottenham saw sales rise sharply, they were up just 1 per cent in the capital overall.

Rightmove said the broader increase was partially driven by lower mortgage costs, with the average five-year fixed rate at 4.61 per cent, down from a peak of over 6 per cent in 2023.

The figures chime with other housing market indicators pointing to its resilience despite a rise in the stamp duty at the start of April after a temporary cut expired. Figures from Nationwide Building Society on Monday showed a surprise 0.5 per cent jump in prices, pushing them close to record highs.

“This month’s hotspots reflect broader market trends driven by affordability and attractive property prices,” said Colleen Babcock, property expert at Rightmove. “With the overall number of sellers continuing to run at a decade-high, sellers need to also be mindful of the competition they might face from other sellers trying to secure a buyer in their area.” BLOOMBERG