The number of residential property transactions in the UK fell to 77,390 in January, new figures published by HMRC have indicated.

This represented a 7% fall from January last year, and was also 27% lower than December 2022.

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.

According to HMRC, residential transactions have “generally been stable” in recent months but are now starting to show a decline in numbers.

For non-residential transactions, the latest figures also showed that the number of transactions in January totalled 8,500. This level was 1% lower than January last year, as well as 18% down from the previous month in December.

“There has been a significant drop in the number of non-seasonally adjusted housing transactions in January falling by 27% on the previous month to 77,390,” commented managing director of capital markets and finance at LiveMore, Simon Webb. “This is the lowest since June 2020 when transaction numbers stood at 67,430 but that was when the UK was just coming out of the first COVID pandemic lockdown.

“With higher mortgage rates than last year and the cost of living bearing down, buying houses will not be at the forefront of people’s minds. With so much economic uncertainty potential home movers will decide to stay put.”

However, director at Legal & General Mortgage Club, Clare Beardmore, said: “Although recent activity has not been at the sky-high level we have become accustomed to in the past three years, there is certainly no reason to panic. The UK housing market is famed for its resilience. The pace of lenders beginning to compete on pricing is encouraging buyers to press ahead.

“Product choice is also improving, with Moneyfacts reporting that available products surpassed 4,000 for the first time since August, almost double what it was at the end of October following the ‘mini-Budget’ fallout.

“As ever, consulting a mortgage adviser is strongly advised – not only do they offer comprehensive, holistic advice based on your individual circumstances, but also often access to exclusive products not available on comparison websites.”

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