The number of residential property transactions increased by less than 1% month-on-month in September, rising for the first time since May.

HM Revenue and Customs (HMRC) revealed that there were an estimated 91,820 residential transactions in September, a year-on-year increase of 9%.

HMRC’s monthly estimates 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 estimated number of non-residential property transactions reached 10,250 in September, which is a monthly and annual increase of 5%, respectively.

Commercial director at Fignum, Josh Skelding, stated that the latest data offers "another sign of market recovery", in line with mortgage approvals reaching a two-year high.

Skelding said: "The July rate cut is already having a visible impact on transactions, with September’s figures suggesting that homebuyers are keen to take advantage of these improved borrowing conditions, and commercial investors are likely to follow in their footsteps if rates continue to ease.

"This year has brought more confidence and flexibility for consumers navigating the buying and selling process, bolstered by stable inflation and improved mortgage deals. Looking ahead, the outlook is still uncertain, with much hinging on the Bank of England’s upcoming rate decisions, and they’ll be cautious not to risk reversing recent progress by cutting rates too aggressively."

Chief revenue officer at finova, Chris Little, added: "We are beginning to see the return of sub-5% products into the market, and for those who are willing to dig a little deeper, rates as low as 3% may also be available.

"In the immediate aftermath of the Autumn Budget, it's difficult to know how the government’s new policy changes will impact market activity. Nevertheless, affordability is still a sticky issue, and it is our hope that the changes to Stamp Duty will not put a restraint on aspiring homeowners.

“As the market prepares for a busier 2025, now is the time to build inroads with borrowers and catch up with old clients.”

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