The number of residential property transactions fell by 3% between September and October, according to the latest data published by HMRC.

Residential transactions totalled 110,850 in October, a figure that has climbed by 29% from the same month last year.

HMRC’s figures suggest that residential transaction levels have been stable in recent months, and remain similar but slightly elevated above pre-pandemic levels. For example the latest non-seasonally adjusted estimate for October 2022 compares to 107,100 in October 2019.

For non-residential transactions, HMRC’s estimate for October totalled 9,940. This was also a 3% fall from September and a 5% drop October last year.

Air Group CEO, Stuart Wilson, commented: “As we continue to deal with the impact of the tumultuous mini-Budget in September, the property transactions statistics from HMRC this month are far from surprising. Rising interest rates and soaring inflation have all contributed towards a challenging climate, however, the robustness of the UK housing market should not be underestimated.

“UK residential transactions have shown their typical stability in recent months, and have remained at levels comparable to late 2019, before the pandemic.  While economic data like this is an indication of market trends, we should not lose focus on the reality faced by advisers and their clients every day.”

Head of lender relationships at Legal & General Mortgage Club, Danny Belton, added: “Today’s findings confirm that the mortgage market continues to sail relatively steadily through choppy waters.

“Demand and activity both remain relatively high despite economic stresses, while Moneyfacts data also shows that interest rates dropped across the board last week, particularly for three-year fixes. This should go some way to encourage buyers, as will the recommitment to stamp duty tax cuts in the Autumn Budget last week. 
 
“Elsewhere, lenders remain very keen to write new business. Advisers are the crucial connecting piece, matching borrowers with lenders to ensure as many people can achieve their dream of homeownership as possible.”

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