Residential property transactions edged lower in April, although industry figures said activity remained resilient despite ongoing geopolitical uncertainty and volatility in mortgage markets.
HMRC’s latest property transaction statistics showed seasonally adjusted residential transactions fell by 3% month-on-month in April, declining from 103,910 in March to 101,030.
Compared with April 2025, residential transactions were 53% higher. HMRC said the sharp annual increase reflected unusually weak activity in April last year after buyers rushed to complete transactions ahead of stamp duty threshold changes, which pulled forward demand into March 2025.
Non-seasonally adjusted residential transactions were down 16% compared with March 2026.
Seasonally adjusted non-residential transactions also weakened, falling by 6% month-on-month, although they remained 1% higher than April 2025. Non-seasonally adjusted non-residential transactions were down 20% compared with March.
HMRC noted that transaction figures typically reflect completions taking place two to four months after an initial offer is made and may not represent current market conditions.
THE SITUATION CAN QUICKLY CHANGE
Mark Harris, chief executive of SPF Private Clients, said: “The war in the Middle East is leading to higher inflation and weaker growth, which is bound to impact housing market activity, although these figures show transaction numbers dipped by a relatively small number month-on-month.
“While the Bank of England is expected to hold base rate again next month, mortgage lenders continue to trim their rates in light of improving funding condition, with. Barclays the latest major lender to lower rates on a range of products.
“However, Swap rate volatility suggests borrowers should not take such reductions for granted, as the situation can quickly change on the back of wider geopolitical events.
“Borrowers should secure a rate at the earliest opportunity for peace of mind, and can always switch to a cheaper rate when they complete if pricing has fallen by that time.”
MIXED ENVIRONMENT
Ryan McGrath, director of second charge mortgages at Pepper Money, said the annual comparison was distorted by the impact of stamp duty changes last year.
He said: “A year-on-year decline in April was always likely and should be viewed in the context of an unusually distorted comparison. March 2025 was exceptionally strong as buyers rushed to complete ahead of the stamp duty threshold changes, and it’s likely some transactions that would ordinarily have completed in April were also pulled forward into March.
“That makes direct year-on-year comparisons more difficult to interpret than usual. The more meaningful signal is in the month-on-month trend, which suggests the market is proving relatively resilient and activity levels are holding broadly steady.
“The broader environment through April was mixed. The Bank of England held rates at 3.75% for a second consecutive meeting, with several market analysts signalling there could be rate hikes if energy prices continue to feed through to inflation.
“Some lenders did begin cutting mortgage rates as market volatility eased following the ceasefire announced in early April, which will have offered a degree of relief, but the average two-year fixed deal still sits meaningfully higher than it did at the start of the year. For many homeowners, the numbers simply don’t stack up in favour of moving.
“That calculation is driving sustained interest in the second charge market. Economic uncertainty, higher borrowing costs and subdued property transaction activity mean many homeowners are choosing to stay put rather than move home for additional space or different amenities. Instead, they are investing in improving their existing properties.
“For borrowers locked into competitive fixed-rate mortgages, second charge lending provides a practical way to fund those improvements or consolidate debt without disturbing their existing rate.”
UNDERLYING MARKET REMAINS RESILIENT
Richard Pike, sales and marketing director at Phoebus Software, said transaction data reflected stronger market conditions earlier in the year before geopolitical tensions intensified.
He said: “Today’s transaction data reflects decisions made earlier in the year when market activity was stronger and before the impact of the ongoing crisis in the Middle East.
“However, while these figures show that buyer demand has fallen, the underlying market remains resilient. There are early signs that affordability pressures are beginning to ease as economic conditions stabilise, which should help support a gradual pickup in activity as we move into the summer months.
“That said, the outlook remains finely balanced. Lenders will need to stay alert to emerging risks, ensuring they have robust servicing and monitoring capabilities in place to identify signs of stress early and support customers effectively if arrears begin to rise.”
