Residential transaction volumes edged higher in November, according to the latest provisional data from HM Revenue and Customs, despite budget uncertainty weighing on activity.
The provisional seasonally adjusted estimate of UK residential property transactions in November 2025 stood at 100,350. This was 8% higher than November 2024 and 1% up on October 2025, marking the strongest seasonally adjusted reading since March 2025.
On a non-seasonally adjusted basis, residential transactions were estimated at 103,330. This represented a 3% fall compared with November 2024 and a sharper 12% decline from October 2025.
Non-residential activity showed more pronounced growth. The provisional seasonally adjusted estimate for non-residential transactions reached 11,700 in November, up 20% year-on-year and 13% higher than October.
The non-seasonally adjusted estimate was 11,240, 12% higher than November last year and marginally lower than October.
HMRC said seasonally adjusted residential transactions rose from 99,060 in October to 100,350 in November, while non-seasonally adjusted figures fell month on month.
For non-residential property, both monthly and annual increases were recorded on a seasonally adjusted basis, continuing a pattern seen around the Autumn Budget last year.
The data forms part of HMRC’s National Statistics release, which provides monthly provisional estimates of residential and non-residential property transactions across the UK.
BUYERS PUSH AHEAD DESPITE LOOMING TAX CHANGES
Tony Hall, head of business development at Saffron for Intermediaries, said: “Despite the Autumn Budget at the end of November, which introduced tax changes including a high-value council tax surcharge and a 2% rise in property-related tax rates that will impact landlords in the year ahead, there was little immediate disruption to the housing market.
“It is therefore no surprise that transactions increased as buyers and investors moved to complete purchases ahead of these changes.
“High-street, specialist and complex lenders continue to develop innovative products to meet borrowers’ needs, while competition across the market is keeping mortgage rates attractive.”
BUDGET UNCERTAINTY DAMPENS ACTIVITY BUT OPTIMISM BUILDS
Richard Pike, chief sales and marketing officer at Phoebus Software, said: “The fall in transactions in November perhaps isn’t surprising given the uncertainty in the run-up to the Budget, with many prospective buyers putting their plans on ice the weeks before.
“We’ve seen this play through in house prices, with both Nationwide and Halifax this week reporting a fall in house prices and a slowdown in annual growth in December.
“However, with the Budget out of the way and the Bank of England’s decision to cut the base rate in December, I’m cautiously optimistic that we’ll see volumes gradually increase through 2026.
“There’s pent-up demand in the market and lenders are competing fiercely on rates, and this should help feed through into completions over the coming months.
“After a volatile few years, and with the budget out of the way, I’m hopeful that 2026 will be the year the mortgage market bounces back.”
RATE STABILITY ENCOURAGES BUYERS AND SELLERS TO ACT
Mark Harris, chief executive of SPF Private Clients, says: “Transaction numbers held up in November as stability and consistency, as far as interest rates are concerned, encouraged many buyers and sellers to press ahead with their plans.
“Lenders continue to reduce their mortgage rates, with HSBC, Barclays and Halifax all cutting pricing this month, and others expected to follow suit.
“With two-year fixes starting from 3.5% and five-year fixes from 3.7%, rates are becoming increasing palatable, which is good news for those buying and remortgaging this year.
“With perhaps up to three further base rate cuts expected by the markets this year, affordability is easing. However, government stimulus in the form of a revised Help to Buy scheme would help boost the number of first-time buyers in the market, which is important in increasing transaction levels up and down the property ladder.”
NEEDS-BASED BUYERS DRIVE MARKET ACTIVITY
Tomer Aboody, director at MT Finance, says: “With transaction levels higher than 12 months ago, we are seeing buyers taking advantage of lower mortgage rates, and many deciding that finally it’s time to buy.
“Although confidence in the government is low, needs-based buyers have to move and simply can’t wait.
“We will hopefully see further activity in the form of an increase in transactions in 2026 encouraged by lower bank rates.”
MARKET STABILISES BUT RECOVERY REMAINS GRADUAL
Ian Futcher, financial planner at Quilter, said: “November’s transaction figures suggest a housing market that is treading water rather than moving decisively in either direction.
“On a seasonally adjusted basis, residential transactions edged up to 100,350, a 1% increase on October and 8% higher than a year ago, marking the strongest reading since March.
“The non-seasonally adjusted data tells a more subdued story, with residential transactions down 12% on October and 3% lower than November last year. This reflects a market where many buyers and sellers remained hesitant, particularly as uncertainty lingered ahead of the budget and the festive period approached.
“With the budget now out of the way, there is a sense that some of that caution may begin to ease. While the introduction of a mansion tax will affect a narrow part of the market, many buyers may have been relieved that the overall package was less punitive than feared.
“As we move into the new year, the convergence of greater post-budget clarity, lower interest rates and a degree of pent-up demand could support a modest improvement in activity. However, stretched affordability and still-elevated borrowing costs mean any resurgence is likely to be gradual rather than dramatic.
“Overall, the data points to a market that has stabilised but is waiting for a clearer signal before moving higher. A slow return to more buoyant conditions looks far more likely than any sudden spike in transactions as we head into 2026.”
