There were a total 81,360 residential property transactions in January, a figure 21% up on the same month last year, according to new HMRC data.

The latest total was down by 17% on December’s figure, 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.

Figures also showed there 8,400 transactions for non-residential property in December, a level 19% down on the previous month, and 3% down on January 2024.

Sales and growth lead at Target Group, Melanie Spencer, said that another fall in monthly transactions “lines up with the slow and steady start to the year some firms have seen”.

“With transaction times as they are, the rush to beat the stamp duty deadline has already cooled – brokers have done the right thing by properly preparing their customers,” Spencer commented. “Add in fears around inflation and higher interest rates, and we should expect a slight drop in confidence.

“The need to support the economy will hopefully prevent a too cautious approach from the central bank, meaning further cuts should come. This is key to keeping the market moving and productive – as seen in the annual figures.”

National account manager at Saffron for Intermediaries, Phil Lawford, added: “These latest figures predate the impact of lower mortgage rates, but we can already see the effect of better deals on the horizon.

“For anyone looking to navigate the market right now, speaking with a professional mortgage adviser has never been more important. Expert advice can ensure you're getting the best deal and moving forward with confidence in a complex market.”

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