There were 95,110 residential property transactions on a seasonally adjusted basis in January, 14% up on the year before, government data revealed at the end of last week.
According to the latest figures from HMRC, there was only a marginal dip on the residential property transactions completed the month before, as there was a 1% fall compared to December.
This indicated a stabilisation in residential transactions following a steep rise in October and a fall in November.
On a non-seasonally adjusted basis, HMRC reported 81,360 residential transactions in January, a 21% annual increase and a 17% monthly fall.
Industry response:
Nathan Emerson, CEO of Propertymark, commented: “Upcoming threshold changes regarding Stamp Duty for those buying in England and Northern Ireland will no doubt have had people aiming to complete with a higher degree of urgency than normal on their new home before the April deadline.
“Overall, the figures represent an encouraging underpinning for the housing sector as we head further into 2025, with a strong uplift in housing transactions year on year and with interest rates sitting markedly lower than twelve months back, there is a solid base for growth as the year progresses.
“However, there are still challenges to overcome and we are keen to see government home building plans from across all corners of the UK implemented to help ease housing shortages and make housing more affordable in the long-term across many regions.”
Richard Donnell, Executive Director at Zoopla, said: “Property transactions have rebounded on increased market activity and a return to house price growth over 2024. This momentum is spilling over into 2025 as shown by the latest transactions data for January 2025 up 23% on 2024. Property transactions will continue to increase as Zoopla’s leading indicators of market activity are 10 to 11% higher than a year ago. Residential transactions are expected to be 5% higher over 2025 reaching 1.15m. There is an extra surge of sales working their way through the pipeline as buyers rush to beat the stamp duty deadline in a months time with extra pressure on the conveyancing industry to deliver for home buyers.
Iain McKenzie, CEO of The Guild of Property Professionals, commented: “The property market started 2025 on a strong note, with January’s year-on-year increase in transactions reflecting the momentum carried over from late 2024. The upcoming Stamp Duty changes in March have encouraged many buyers to act sooner, adding to the early-year surge in activity.
“With February and March historically being the best months to list a home, and data showing they lead to the highest completion rates, sellers have a prime opportunity to capitalise on heightened demand. Additionally, while higher-than-expected inflation may pump the brakes on the pace of interest rate cuts, expectations of lower rates later this year should further support buyer confidence.
Despite mortgage rates staying relatively high, sales activity remains strong, and with moderate price growth projected throughout 2025, particularly in areas with untapped potential, the outlook for the market remains positive.”
Gareth Samples, CEO of The Property Franchise Group, said: “Despite certain headwinds, the property market has had an encouraging start to the year in terms of buyer activity. The momentum in sales seen at the end of last year has continued into the early stages of this year, even with mortgage rates remaining relatively high.
“So far this year, the number of potential buyers contacting agents about homes for sale is 8% higher than last year, while the number of sales being agreed is up by 15%.
“History has shown that key deadlines – such as the end of a Stamp Duty holiday or, in this case, a threshold change – often drive increased activity as buyers look to save on costs. While there may be some tempering in demand after the deadline, we hope to see renewed energy in the market as we head into spring.
“The lighter, brighter days improve a home’s kerb appeal, and research shows that if you list in spring, you are more likely to find a buyer faster than any other time of the of year. Over the past three years, 27% of all sales have taken place in spring – the highest of any season.”
Andrew Lloyd, MD at Search Acumen, added: A typical slow start to the year should not detract from the fact that the recovery in the UK real estate market which kicked off last year continues to drive transactions in a positive direction.
“Against a less-than-optimal macroeconomic backdrop, with low growth and inflation fears heralding turbulence in the horizon, the start to 2025 is nonetheless seeing a lot of promise in the residential and commercial real estate sectors.
“In the housing market especially, the pending stamp duty deadline continues to put pressure on buyers to get transactions over the line.”