UK residential transactions in January came in at 82,000, 12% lower than a year ago, but 2% higher than the previous month, HMRC data shows. 

It adds that UK non-residential deals edged up by 1% in January compared to the previous 12 months, but was 1% lower than the final month of last year, according to the government body’s provisional seasonally adjusted estimates. 

SPF Private Clients chief executive Mark Harris says: “Transaction numbers dipped again in January as improved mortgage rates, which has boosted buyer and seller confidence since the start of the year, and is not yet being reflected in the official data. 

“The increase in activity has been down to keener pricing on fixed-rate mortgages in particular, but unfortunately, the direction of travel for new mortgage rates in the past couple of weeks has been upwards.  

“Lenders have increased their fixed-rate pricing at short notice in order to stay on top of service levels. It’s a painful reminder that there may be bumps in the road and there are no guarantees – if you see a rate you like the look of, you would be wise to secure it. 

“The Budget [next Wednesday] is eagerly awaited, with hopes of some form of assistance for first-time buyers through 99% mortgages or further stamp duty concessions or reform.  

“Anything that would boost transactions and get the market moving would be welcome, as this will filter out to help many connected industries and the wider economy.” 

MT Finance director Tomer Aboody points out: “While we are moving into a much more positive market with increased sales, we are still seeing lower transactional levels compared with 2022 and early 2023, when rates were constantly climbing and inflation was double the level it is now. 

“With rate stability should come an uptick in transactions. However, some assistance from the government next week in the form of an adjustment to stamp duty levels, would help those along, providing a boost to the wider economy.” 

Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, adds: “On the ground, the sales market is picking up momentum after a quieter 2023. A surge of committed buyers and a strong pipeline of serious applicants bodes well for sellers. 

“With a historical pattern of market slowdown during an election year, the current landscape presents an ideal moment for vendors to capitalise on heightened demand, potentially resulting in faster sales and more favourable prices.  

“Notably, we’ve seen an uptick in applicants with sizeable budgets seeking to upsize to their forever homes, as well as first-time buyers and second steppers wanting flats with outside space. 

 “Overall market strength and stability is being underscored by better mortgage rates and persistent supply and demand imbalances, which is particularly evident across London.”