Residential property transactions are estimated to have increased by 7% year-on-year in December, following a drop of 3% in November, the latest HMRC figures have revealed.

The non-seasonally adjusted estimate by the Government's tax collection agency stood at 105,730, marking a 1% month-on-month increase.

HMRC’s monthly estimates for property transactions are based on its own records as well as those of Revenue Scotland and the Welsh Revenue Authority, for Stamp Duty Land Tax (SDLT), Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) in each of the three nations, respectively.

The provisional non-seasonally adjusted estimate for the number of non-residential transactions stood at 11,850, marking an 11% annual increase and a 4% month-on-month jump.

Director of second charge mortgages at Pepper Money, Ryan McGrath, said that it is important to note that these figures do not reflect the pause in activity ahead of the Autumn Budget.

He concluded: "What they do show, however, is underlying resilience. The uptick in transactions came before the full benefit of recent rate improvements had filtered through, and with inflation easing and mortgage pricing continuing to soften, the direction of travel is becoming clearer, giving households greater certainty as we move into 2026.

"However, improving market conditions doesn’t automatically mean more people are choosing to move. The ‘improving versus moving’ trend remains a defining feature, with many homeowners still anchored to historically low fixed-rate mortgages. Refinancing their entire balance at today’s rates is often a step too far financially.

"As a result, demand remains strong among borrowers looking to improve their homes or rebalance their finances rather than relocate. In the right circumstances, second charge mortgages play a key role, allowing customers to unlock equity for renovations or consolidate existing debts, while keeping their main mortgage rate untouched."

---