Residential property transactions have fallen by 24% month-on-month in January to an estimated 79,880, following a 1% increase in December, HMRC has revealed.

Year-on-year, the estimated number of non-seasonal residential transactions fell by 3% in January.

HMRC’s monthly estimates for property transactions 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.

In January, the estimated non-seasonal number of non-residential transactions increased by 3% year-on-year in January to 8,470, but dropped by 6% in comparison to December.

Chief executive officer at TwentyCi, Colin Bradshaw, said this drop in transactions highlights the "persistent friction" in the market following the 2025 fiscal changes.

He concluded: "While the macroeconomic 'noise' is beginning to settle - with inflation finally tracking back toward the 2% target - the reality for many movers remains one of cautious affordability. This, coupled with the recently announced ‘Mansion Tax’, has created a natural cooling effect - particularly in premium properties where we’re seeing more buyer caution than other areas of the market.

"However, buyer enquiries in the mainstream remain robust, which suggests there is a significant amount of latent demand. Once the current political and inflationary uncertainty fully clears, this pause could quickly turn into a surge. For lenders, the year ahead remains one of significant opportunity as these hesitant buyers eventually ease off the brake with confidence."

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