The number of residential property transactions in the UK increased by 26% in March compared to February’s total, new HMRC figures have indicated.

March’s total of 94,870 property transactions represented a 14% fall from March last year, however.

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.

For non-residential property, March registered 13,040 transactions which was a 59% increase on February, as well as a 6% rise on March last year.

In terms of the entire financial year, covering the period running from April to March, HMRC has also revealed a provisional non-seasonally adjusted estimate of 1,201,050 residential property transactions for 2022/23. This is down on the 1,370,340 estimate for 2021/22.

Commenting on the latest figures, CEO and founder at Smartr365 and Capricorn Financial Consultancy, Conor Murphy, said: “With the broader economic outlook steadily improving, I am optimistic about the performance of our sector over the spring and summer months. This is, after all, usually a busier selling period due to the favourable weather conditions and longer daylight hours.

“As activity picks up, brokers and lenders must be well prepared to support the increased demand with slick and efficient processes.”

Managing director of real estate at Shawbrook, Emma Cox, added: “Sales volumes are yet to catch up with what’s looking like a return in demand to the property market. While buyers and sellers have tentatively been dipping their toes back in, March’s property transactions were subdued.

“It’s not as gloomy as it appears, though. Given how long it can take to complete a purchase, it’s likely a lag from Christmas when the market is typically quiet anyway, compounded by soaring inflation and mortgage rates at that time. We’ve seen increased demand from professional property investors, who are making the most of opportunities in the market, and I’m confident that as spring turns into summer, we’ll see a positive trend emerge.”

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