The number of property transactions in the residential market hit an estimated 108,960 during December, a 3% fall from November’s total.

According to latest figures published by HMRC, December’s total also reflected a 1% drop compared to the same month in 2021.

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.

Residential transactions have “generally been stable” in recent months but were slightly weaker in December, HMRC stated. They still remained higher than pre-pandemic levels, however, with the provisional non-seasonally adjusted estimate in December 2022 of 108,960 climbing above the 102,270 in December 2019.

In terms of non-residential property transactions, the latest HMRC estimate reached 10,810 in December, a figure 9% up on November but 5% lower than December 2021. HMRC added this reminded broadly in line with historic levels, with December 2019 seeing 10,950 transactions, for example.

Managing director of capital markets and finance at LiveMore Capital, Simon Webb, commented: “The December housing transactions will be completions from buyers putting offers in at least three months ago, in most cases, before the mini-Budget last September caused some panic in the housing and mortgage markets.

“But transactions are now starting to slow and I expect for the early months of 2023 numbers will be lower as people were putting buying and selling plans on hold in the last quarter of 2022. A combination of potential recession, high inflation and cost of living plus higher mortgage rates, although they have been coming down, brings uncertainty into people’s minds.”

Director at Legal & General Mortgage Club, Clare Beardmore, added: “Our market is not without its challenges, however, there are plenty of reasons to be positive for the year ahead. Average mortgage rates have begun to fall again and lenders are keen to add to their loan books in a competitive lending market, which is all good news for consumers and represents a big opportunity for advisers to show their value.

“Beyond new transactions, 2023 is also predicted to be a big year for remortgage activity, which should keep the mortgage market busy. With uncertainty and economic worries dominating the headlines, first-time buyers and homeowners can both benefit greatly from the experience, reassurance, and knowledge that advisers have to offer.”

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