Residential property transactions in the UK dipped on a monthly basis in January, show new government figures.

On a non-seasonally adjusted basis, transactions fell to 85,520, which is 22.2% lower than in December 2021 and 12.6% lower than in January 2021, according to HMRC.

Meanwhile, non-residential transactions came to 9.070, which is 18.1% down on December 2021 but 21.6% more than seen a year ago, in January 2021.

On a provisional seasonally adjusted basis, however, HMRC reports residential transactions at 106,990 in January, 5.1% more than in December 2021 and 10.6% down on January 2021.

“Statistics always need to be taken with a pinch of salt and the transactions data from January was a perfect example of why that is true,” says Just national operations director John Phillips.

He continues: “The truth – as is usually the case – lies somewhere in the middle [of the seasonally-adjusted and non-seasonally adjusted figures].

“Activity is beginning to settle into a natural rhythm as the fall-out from the stamp duty holiday spikes begin to settle. The number of transactions is slightly up from pre-pandemic January, so it is hard to argue that the market is not in good health.”

And Phoebus Software sales and marketing director Richard Pike says: “Looking at the non-seasonally adjusted figures… we are starting to see the trend that we were probably expecting last month.

“As the economy recovers, more quickly than we might have imagined according to the latest PMI survey, there is a much greater likelihood of another interest rate rise.

“This is perhaps the only thing that may curb the rate at which house prices continue to rise.

“Recovery, rising prices and rates… It’s difficult to predict where the housing market will go next. Suffice to say that it cannot go on the way it is. The disparity between those that have and those that want to have is getting greater all the time.”