The number of UK residential transactions in May jumped by 17% to 91,290 from a year ago, HMRC data shows, up 2% on the previous month.

This is the fifth month in a row provisional seasonally adjusted home sales were higher, fuelling industry hopes about a strong start to the year.

SPF Private Clients chief executive Mark Harris says: “Several lenders have reduced fixed-rate mortgages for borrowers taking out new deals on the back of cheaper funding rates, which is encouraging and hopefully a sign of better things to come.

“But until the Bank of England starts cutting interest rates, these reductions are unlikely to become more sustained.”

The base rate has remained at a 16-year high of 5.25% since last August. The last time the central bank cut rates was in March 2020.

Money markets had hoped the first cut would come as early as the spring, but many economists have now pencilled in a first cut in November.

Legal & General Mortgage Services managing director Kevin Roberts says: “This is the latest in a run of positive news for the housing market, after inflation hit the Bank of England’s 2% target in June, for the first time since July 2021.

“Rightmove suggests confidence in the market is being translated into strong house price growth in some of the relatively less expensive and northerly regions.”

Standard Life Home Finance head of sales Sanjay Gadhia points out: “Excitement is building for a strong second half of the year for the property market, with a number of major high street lenders moving to cut their fixed-rate deals over the past week.

“It’s encouraging to see customers purchasing with increased confidence, and confirms that the property market is robust enough to shrug off any uncertainty that may come with an election cycle.”

More2life managing director Ben Waugh says: “The housing market is not prepared to sit still this year. Despite higher interest rates and the general election, which many assumed would prompt a possible lull in activity arising from uncertainty, borrowers are reaching out and seizing the opportunities when they arise.

But Waugh adds: “However, when achieving home ownership comes at the cost of long-term financial security, we must pause and reflect. Both first-time buyers and refinancers are increasingly opting for mortgages with 30-plus-year terms to cope with soaring house prices and underwhelming wage growth.

“These individuals might be feeling anxious about the prospect of managing mortgage debt in retirement and will need professional advice to help them find sustainable solutions.”

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