Industry Experts React to Latest HMRC UK Property Transactions Report

The UK property market has shown promising signs of stability, as the latest HMRC data revealed 95,110 seasonally adjusted residential property transactions in January—marking a 14% increase compared to the previous year. Despite a slight 1% decline from December, this trend suggests a steady recovery in housing activity.

On a non-seasonally adjusted basis, the report recorded 81,360 residential transactions in January, reflecting a 21% annual rise but a 17% drop from the previous month. Industry leaders have weighed in on these figures, highlighting key market drivers such as Stamp Duty changes, increased buyer confidence, and evolving mortgage trends.

Property Industry Leaders Share Insights

Stamp Duty Impact on Market Activity

Nathan Emerson, CEO of Propertymark, attributes the rise in transactions to upcoming Stamp Duty threshold changes in England and Northern Ireland. He noted that many buyers rushed to complete purchases before the April deadline, adding, “These figures provide a strong foundation for the housing sector in 2025. With lower interest rates than last year, we anticipate continued growth. However, long-term affordability remains a challenge, and we urge the government to accelerate home-building initiatives.”

Market Momentum Continues into 2025

Richard Donnell, Executive Director at Zoopla, emphasized the market’s resurgence, stating, “The rebound in property transactions is fueled by rising market activity and renewed house price growth. January 2025 transactions were up 23% from the previous year, with residential sales expected to increase by 5% over the year, reaching 1.15 million.” He also pointed to heightened demand due to the upcoming Stamp Duty deadline, increasing pressure on conveyancers to finalize deals swiftly.

Early-Year Surge and Seller Opportunities

Iain McKenzie, CEO of The Guild of Property Professionals, highlighted the positive start to the year, remarking, “January’s transaction growth builds on the momentum from late 2024. With February and March being the best months to list a home, sellers have a prime window to capitalize on high demand.” He added that while inflation may slow the pace of interest rate cuts, lower expected rates later in the year should further boost buyer confidence.

Buyer Demand and Seasonal Market Trends

Gareth Samples, CEO of The Property Franchise Group, noted that despite challenges, buyer interest remains high. “So far this year, buyer inquiries have risen by 8%, and sales agreements are up by 15% compared to 2024. Historical data shows that seasonal factors, such as longer daylight hours in spring, enhance property appeal and drive faster sales. Spring has consistently been the most active season, accounting for 27% of all property transactions in the past three years.”

Overall Market Outlook for 2025

Andrew Lloyd, MD at Search Acumen, acknowledged macroeconomic uncertainties but maintained an optimistic stance. “Despite inflation concerns and economic fluctuations, the UK property market remains resilient. The early 2025 performance signals ongoing recovery in both residential and commercial sectors. The pending Stamp Duty deadline continues to add urgency to transactions, supporting sustained market activity.”

Conclusion: Positive Trends Amid Challenges

The latest HMRC property transaction report highlights encouraging trends in the UK housing market. While upcoming policy changes, mortgage rates, and economic conditions will influence future growth, industry experts agree that market momentum remains strong. With a surge in buyer demand, strategic property listings, and a favorable lending environment, 2025 is shaping up to be a year of continued recovery and opportunity in the real estate sector.

For the latest updates on UK property transactions, market trends, and real estate insights, stay tuned.