January saw a 12.6% annual fall in the number of residential property transactions carried out in the UK, new HMRC estimates have indicated.

HMRC’s non-seasonally adjusted estimate for residential transactions was also 22.2% lower than December 2021.

For non-residential transactions, the HMRC data showed that the estimated total hit 9,070, a figure 21.6% higher than January last year, but 18.1% down on the previous month.

HMRC’s national statistics provide monthly provisional estimates of residential and non-residential property transactions in the UK and its constituent countries, with figures based on records for Stamp Duty Land Tax (SDLT). Statistics are also based on records by Revenue Scotland for Land and Buildings Transaction Tax (LBTT), and the Welsh Revenue Authority (WRA) for Land Transaction Tax (LTT).

Commenting on the data, Legal & General Mortgage Club director, Kevin Roberts, said: “Britain’s property market is enjoying its strongest start to the year since 2005, with buyers’ new-found preferences continuing to drive purchase activity.

“Relatively modest interest rates and the high availability of mortgages have also ensured that the market remains buoyant amidst strong house price growth and wider inflationary pressure. For anyone looking to move in the next few months, speaking to an independent mortgage adviser now could be a wise move to lock into a top deal as rates and affordability rules are likely to shift.”

Perenna co-founder and COO, Colin Bell, added: “While we celebrate the strong demand reflected in today’s findings, let us also acknowledge the significant elephant in the room – house price inflation. There are many positives to a strong and stable buyer appetite, but not when it causes homeownership to slip out of sight for a large proportion of a generation. Macro statistics like this do hide underlying concerning statistics at a micro level.

“Long-term fixes will be key to recovering from this affordability crisis as they help to buyers to spread their repayments over a longer period and reduce the risk to lenders. Offering more high loan-to-income and low-deposit mortgages will also aid these underserved house-hunters.”

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