UK property transactions stabilised at the end of 2025 with residential sales holding firm after months of distortion caused by stamp duty changes, latest figures from HM Revenue & Customs revealed last week.
The provisional seasonally adjusted estimate for residential transactions in December 2025 stood at 100,440, down by less than 1% on November but 5% higher than the same month a year earlier.
The figures point to a market that has levelled out after a surge in activity earlier in the year driven by buyers rushing to complete ahead of the stamp duty land tax threshold reductions introduced on 1 April 2025.
On a non-seasonally adjusted basis, residential transactions rose to 105,730 in December, an increase of 1% on November and 7% higher year-on-year, underlining the resilience of buyer demand despite higher borrowing costs and affordability pressures.
BROADLY STABLE
HMRC said monthly residential transaction levels have remained broadly stable since Summer 2025, following a sharp pull-forward of activity at the start of the 2025 to 2026 financial year.
The fading impact of tax incentives has removed volatility from the data, revealing a housing market operating at a consistent, if subdued, pace.
INDUSTRY REACTION
Richard Donnell, executive director at Zoopla, says: “Home buyers agreed housing sales at an increasing rate over 2025 building the largest pipeline of sales working their way to completion since the pandemic.
“This is why there were over 100,000 residential transactions in December 2025, up 5% on the year before.
“Zoopla data shows that 2026 has got off to a slower start than a year ago with slightly fewer buyers and new sales, but there are clear signs that momentum is building. There is a strong desire to move home, but buyers remain cautious and price sensitive.”
FINELY-BALANCED
Tom Bill, head of UK residential research at Knight Frank says: “Transaction activity in December was in line with the five-year average as certainty following the Budget meant deals went through before Christmas.
“However, fresh activity in the form of mortgage approvals fell, which signals a relief bounce rather than a more meaningful spike in demand.
“The market in January started well but recent upwards pressure on borrowing costs means the outlook for this year feels finely-balanced. The absence of political drama over the next few months would help confidence, but that feels like wishful thinking.”
SUSTAINABLE UPLIFT
Nick Leeming, Chairman of Jackson-Stops, says: “December’s HMRC data will largely reflect deals agreed before the November Budget. The figures are completion-based, so December’s data principally reflects transactions agreed in late summer or early autumn, rather than current market activity.
“Beneath the surface, buyer interest was strong in December 2025. Our branch data shows new applicant registrations up on the previous year, with some locations, particularly coastal markets, seeing numbers double.
“There was also a clear urgency to get deals agreed, suggesting buyers saw prime regional markets as good value and wanted to secure property at current prices.
“Looking ahead, buyer demand appears on course to return towards 2024 levels, supported by declining average mortgage rates and a more predictable borrowing environment.
“Buyers remain selective and value-driven – accurate pricing will be crucial in 2026. Well-priced homes attract strong interest, while over-ambitious pricing risks slowing a sale. Overall, the market is set for a modest, sustainable uplift, underpinned by improving demand, realistic pricing and available stock.”
LONGER TO COMPLETE
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “At a time when we might have expected more of a pause at least as these figures reflect activity particularly leading up to the Budget at the end of November, buyers and sellers have demonstrated considerable resilience.
“We have certainly noticed more activity since that time, which has resulted in more urgency although sales are still taking longer to complete.”
FEELING THE STRAIN
Nathan Emerson, CEO at Propertymark, says: “Based on December 2025’s figures, it is encouraging to see that property transactions remained stable following the Autumn Budget.
“At a time when many households were concerned about rising living costs, this stability suggests that the Budget provided enough clarity for people to continue progressing with plans to buy or sell a home.
“The UK Government has announced a range of measures designed to strengthen the housing market, including reforms to protect leaseholders from unfair ground rents and investment to increase the supply of homes through new development and social housing. These longer-term policies should help improve affordability and choice for consumers across England.
“That said, many buyers are still feeling the strain of higher borrowing costs. To ease wider cost of living pressures and encourage more market activity, inflation and interest rates will need to fall. This would help make mortgages more affordable and support greater confidence among those looking to move home.”
NOT A RUNAWAY MARKET
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “While this is not a runaway market, it is a far healthier one than a year ago.
“Transactions are gradually improving and prices have proved resilient, particularly where homes are priced realistically.
“We’re seeing far more purposeful buyers than we did last autumn, and assuming interest rates remain supportive, the spring market looks encouraging with momentum continuing to build.”
INCREASED CONFIDENCE
Jason Tebb, President of OnTheMarket, says: “Transaction numbers remain steady as the housing market demonstrates resilience, despite many wider economic and political concerns.
“The series of interest rate reductions from the Bank of England have provided reassurance for buyers and sellers, and helped ease affordability.
“Further rate reductions this year will only strengthen the market and encourage those planning to move, enabling them to plan ahead with more confidence.
“Now that the uncertainty created by the Budget is behind us, there is clarity and increased confidence.
“As some lenders reduce their mortgage rates, the early signs for this year are encouraging and most of the agents we have spoken to have seen a better start to this year than Q1 2025.”
MAKE BUYING AND SELLING EASIER
Maria Harris, Chair of the Open Property Data Association (OPDA), says: “I’m confident that we’ll see a steady increase in 2026 as affordability improves and more people look to move home.
“However, it’s consistently acknowledged that the experience of buying and selling a home just isn’t where we need it to be.
“There were more than 1.2million residential property transactions last year, according to HMRC data. But thousands of house sales fell through because of the outdated and inefficient systems we have in place.
“Data published in The Times this week shows the percentage of property sales collapsing increased last year, from 23.3 per cent in 2024 to 23.8 per cent in 2025. This compares with 21.9 per cent of deals collapsing at the height of the low-rate mortgage period before Covid in 2019.
“This is a worrying trend in the market, causing heartache and stress for sellers and costing the UK economy millions each year. We need to transform the process, based on a common, trusted foundation for data sharing.”
BUYERS HESITATING
Richard Sexton, Commercial Director of proptech surveyor portal Houzecheck, says: “A slightly softer set of transactions doesn’t mean demand has disappeared, it means buyers are hesitating. Buyers are being cautious and considered, not absent and afraid.
“When uncertainty creeps in, buyers apply the brake to the process, and that’s where proptech has a real role to play. Reducing friction, speeding up early-stage checks and helping people ease off the brake with confidence when ready.
“While activity for this quarter may be slower than some would like, there is a lot of latent demand in the market. Once confidence returns this pause could quickly turn into a surge, and the year ahead could see a much busier time for both buyers and sellers.”
TENTATIVE MOMENTUM
Andrew Lloyd, Managing Director at Search Acumen, says: “December’s figures show a market holding the line against the usual seasonal slowdown.
“Transactions saw a 1% month-on-month increase, defending against the drop the festive period usually dictates. This suggests the tentative momentum we saw building in November has managed to weather the winter chill, showing surprising resilience at the tail end of a turbulent year.
“In the residential sector, affordability constraints and mortgage pricing continued to dictate the pace of play right up to the year-end. While November showed signs of the market testing the water, December’s figures remind us that consumer confidence is still fragile. Buyers are entering 2026 with a sense of cautious optimism, waiting for definitive signs of economic stability before committing to major financial decisions.
“December is often a race to the finish line for corporate deals, but the broader picture remains one of selective investment. The appetite is there, but high financing costs mean investors are scrutinising the long-term fundamentals of every asset more intensely than ever.
“The market craves certainty.”
He adds: “As we look into the first quarter of 2026, the overarching theme remains the same: the market craves certainty. Pent-up demand is building, but activity will continue to come in fits and starts until we get a stable economic and political runway.
“For the property industry, January is the time to prepare for this returning demand. Law firms and conveyancers who used the December lull to audit their workflows, integrate AI, and digitise their due diligence will be the ones winning market share as the spring pipeline builds. The market might be in a seasonal freeze, but the firms that act now will be first out of the blocks in the new year.”
DEMAND WILL INCREASE
Joe Pepper, UK Chief Executive Officer at PEXA, says: “This is more than simply a seasonal anomaly. The Autumn Budget was a bit of a damp squib in terms of housing reform, and a marginal drop in transactions is a reflection of that, deterring some buyers’ efforts until better circumstances arise.
“With some product innovation at the back end of 2025, these circumstances may well be just around the corner, and demand will likely increase over the next few months. In the meantime, the backlog of those wanting to buy continues to grow, threatening to overwhelm the system when they decide to take the leap.
“Readiness to deal with such a surge will be crucial. It will be the difference between a prosperous housing market that drives economic growth and a market that collapses under the pressure.
“When further demand comes, conveyancers will do all they can to serve their customers as they always do, but if they don’t have adequate infrastructure in place to process transactions with certainty and transparency, it won’t be long before the system crumbles, placing enormous strain on a market that we’re depending on for economic growth.
“We need urgent public and private investment in the digitalisation of a system that is currently failing every stakeholder – conveyancers, lenders, brokers and consumers alike.”
