Housing market shows resilience in December figures

Property transactions saw a modest rise in December, according to the latest HM Revenue & Customs (HMRC) data, indicating a market that remains active despite economic and political uncertainty.

On a seasonally adjusted basis, there were 100,440 residential property transactions in December. This represented an increase of 5% compared with December 2024, though volumes were marginally below those recorded in November 2025.

Without seasonal adjustment, residential transactions totalled 105,730. That was 7% higher than in December 2024 and 1% above November 2025, suggesting a slight month-on-month uplift in completions at the end of the year.

In the non-residential segment, seasonally adjusted transactions reached 10,640 in December. This was 7% higher than a year earlier but 10% lower than in November, pointing to a softer month for commercial and mixed-use deals.

On a non-seasonally adjusted basis, non-residential activity stood at 11,850 transactions. This was 11% up on December 2024 and 4% higher than November, underlining ongoing demand in parts of the commercial market despite short-term fluctuations.

Commenting on the latest property transactions data, north London estate agent Jeremy Leaf (pictured top left) noted the robustness of buyer and seller sentiment even around the time of the Autumn Budget.

“At a time when we might have expected more of a pause at least as these figures reflect activity particularly leading up to the Budget at the end of November, buyers and sellers have demonstrated considerable resilience,” Leaf said.

“We have certainly noticed more activity since that time, which has resulted in more urgency although sales are still taking longer to complete.”

Ryan McGrath (pictured top centre), director of second charge mortgages at specialist lender Pepper Money, however, pointed out that the figures do not yet capture the slowdown in activity ahead of the November Budget because of the lag between agreed sales and recorded completions.

“What they do show, however, is underlying resilience,” McGrath said. “The uptick in transactions came before the full benefit of recent rate improvements had filtered through, and with inflation easing and mortgage pricing continuing to soften, the direction of travel is becoming clearer, giving households greater certainty as we move into 2026.”

Meanwhile, brokers are also being urged to focus on how borrowers are responding to improved product availability and lower pricing, rather than assuming a rapid rebound in transaction volumes.

“Today’s figures suggest the housing market remains cautious rather than stalling, with buyers still taking time to respond to improving conditions,” said Hamza Behzad (pictured top right), business development director at mortgage technology provider finova. “While mortgage product availability is at its highest level in 18 years, many households are clearly still weighing up their next move.

“Mortgage rates are lower than a year ago, which is helping to rebuild confidence, but this is shaping up to be a slow and measured recovery rather than a rapid rebound. Most forecasts continue to point to low single-digit house price growth in 2026, as buyers remain price-sensitive after a prolonged period of economic and political uncertainty.

“As large numbers of borrowers reach the end of fixed-rate deals this year, competition among lenders is intensifying, improving pricing and choice. With further rate cuts still expected, the foundations for stronger activity are being laid, even if many buyers are choosing to wait for clearer signals before committing.”