Residential property transactions rose 19% year-on-year in December, reaching 96,330 on a seasonally adjusted basis, according to the latest HMRC data. This also marks a 3% increase from November.

On a non-seasonally adjusted basis, transactions totalled 98,120, reflecting a 15% annual rise but a 7% decline compared to November.

December’s figures would seem to indicate stabilisation following a sharp increase in October. Transactions dropped back to normal levels in November and remained relatively steady in December.

For the year to date (April to December), seasonally adjusted transactions are estimated at 873,450, while non-seasonally adjusted transactions stand at 839,870.

CONFIDENCE BOOST

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Rate reductions are a great way of boosting confidence and activity in the housing market, as we saw with the base rate cuts in second half of last year.

“All eyes will be on the Bank of England next week to see whether we get another, much-anticipated rate cut, giving the market a welcome boost and helping those borrowers who may be struggling with affordability.”

STEADY DEMAND

And Matt Harrison, commercial director at finova Broker, said: “While seasonal fluctuations are expected, the month-on-month rise in seasonally adjusted transactions reflects steady demand, which should give brokers, lenders, and advisers confidence in the market’s resilience.

“The non-residential sector has seen a slight year-on-year dip, but the monthly increase suggests ongoing activity.

“With this momentum, the industry should remain focused on ensuring accessible lending and efficient processes to support continued growth. As affordability remains a key concern, collaboration across the market will be essential to sustaining this positive trajectory into the new year.”

MORE LENDING OPTIONS

Phil Lawford, national account manager at Saffron for Intermediaries, said: “An increase in property transactions at this time of year is a welcome sign, particularly after a challenging period for the housing market.

“Concerns around inflation and a higher interest rate environment have placed pressure on buyers, but the market’s resilience remains evident. Recent discussions around loosening mortgage lending rules could provide further support, potentially making homeownership more accessible for many.”

And he added: “These figures predate any resulting changes from the FCA’s recent review of lending regulation, conducted to help the Government drive economic growth. While we’re not expecting a return to the historically low rates of the last decade, the prospect of more tailored, accessible lending options could help sustain this positive momentum for buyers.”

GROWING CONFIDENCE

Tomer Aboody, director of specialist lender MT Finance, said: “A quite significant increase in transaction numbers compared with this time last year shows how reduced interest rates have encouraged buyers and sellers to be active.

“Although we are still some way off the highs of previous years, the growing confidence in the market is promising.

“The full impact of the Budget has yet to be factored in, and therefore, a true indication of where we are at would be around springtime, once the stamp duty holiday comes to an end.

“Let’s hope a further cut in interest rates comes before then, helping the market stay productive and confident.”

BUMPER MONTH

Melanie Spencer, sales and growth lead at Target Group, said: “Looking at the non-seasonally adjusted figures, it will come as little surprise to see a dip in residential transactions in December.

“With a drop in November too, there may be concerns of a pattern forming. However, it’s important to remember that October was a bumper month as buyers and sellers acted early to try and pre-empt anything in the Budget.”

And she added: “Despite doom and gloom surrounding the Budget and a lack of action to support buyers, the housing market has continued to tick along. Feedback seems to be that buyers have returned to the market in 2025, looking to get plans back on track and beat the changes to stamp duty thresholds – although perhaps in vain given transaction times. With the first MPC meeting of the year next week, fingers are crossed for another cut to the base rate to really get things moving.

 “If this is the case, it’s important that lenders are able to react. That requires the right systems and technology to not just support fast decision-making, but to facilitate efficiencies across the entire mortgage process. Timing can make or break a deal, particularly as we head towards another Stamp Duty cliff edge in the coming months.”