Property transactions held up extremely well in December, falling slightly from November but still 5% higher than the previous year.
New seasonally adjusted figures from HMRC record 100,440 transactions in the last month of 2025, 1% down on the previous month.
The non-seasonally adjusted estimate of transactions is 105,730, 7% higher than December 2024 and 1% up from November. And monthly transaction levels remain stable since the summer 2025.
Mortgages down
Meanwhile, Bank of England statistics show mortgage approvals fell by 3,100 to 61,000 in December, whereas remortgaging with a different lender rose by 1,600 to 38,400.
Net mortgage borrowing remained unchanged when compared to November at £4.6 billion.
The interest rate on newly drawn mortgages decreased to 4.15% in December from 4.20% in November. The rate on outstanding mortgages was 3.92% in December, up from 3.90% the previous month.
Industry reaction
The analysts
Anthony Codling, MD Equity Research at RBC Capital Markets
“Housing transactions ended the year on a high, despite the housing market uncertainty around the late Budget, housing transactions in 2025 were 10% higher in 2025 than 2024, coming in at 1.21 million (up from 1.10m), and just ahead of the 20-year average.
2026 may well turn out to be a golden year.”
“If this is what the UK housing market can achieve in what many regarded as bad year for the housing market, 2026 may well turn out to be a golden year – with a backdrop of falling mortgage rates and (according to UK housebuilders’ January trading updates) improving homebuyer sentiment.”
The agents
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts
“While this is not a runaway market, it is a far healthier one than a year ago. Transactions are gradually improving and prices have proved resilient, particularly where homes are priced realistically.
“We’re seeing far more purposeful buyers than we did last autumn, and assuming interest rates remain supportive, the spring market looks encouraging with momentum continuing to build.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman
“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.
“We have certainly noticed more activity since that time, which has resulted in more urgency although sales are still taking longer to complete.”
Tom Bill, Head of UK Residential Research at Knight Frank
“Transaction activity in December was in line with the five-year average as certainty following the Budget meant deals went through before Christmas.
“However, fresh activity in the form of mortgage approvals fell, which signals a relief bounce rather than a more meaningful spike in demand,” he says.
“The market in January started well but recent upwards pressure on borrowing costs means the outlook for this year feels finely-balanced. The absence of political drama over the next few months would help confidence, but that feels like wishful thinking.”
The brokers and lenders
Mark Harris, CEO at SPF Private Clients
“While mortgage approvals dipped in December, the underlying resilience of the housing market has been in evidence now that the Budget is out of the way.
“The effective interest rate paid on new mortgages fell to 4.15%, but the rate on the outstanding stock of mortgages increased slightly to 3.92%, highlighting that affordability remains a concern for many,” he says.
“As we move towards spring, the good news for borrowers is that lenders are keen to lend and have the funds available to do so. Many of the big lenders have reduced their mortgage rates and while some have increased pricing in recent days, we expect rates to jump around, rather than significantly move one way or another.”
Tomer Aboody, Director at MT Finance
“Although it looks as though transaction numbers are trending higher, both buyers and sellers are not completely committed as yet.
“Hopefully, a period of lower mortgage rates combined with a lack of patience and eagerness to get deals done, will see higher transaction levels in the forthcoming year,” he says.
“Remortgaging numbers rose, suggesting that borrowers coming off low rates are shopping around for the best rate possible rather than opting for the ease of sticking with their existing lender.”
The industry leaders
Nathan Emerson, CEO at Propertymark
“Despite the economy gradually showing signs of improvement, it is disappointing not to see this fully translate into a dynamic housing market quite yet.
“We currently sit in a position where people who are thinking of a house purchase are rightly cautious regarding their finances. It is, however, positive to see a modest uplift regarding remortgaging as 2025 ended,” he says.
“For the housing market to deliver sustainable growth, there are many cogs that need to turn in harmony with each other, and although we are certainly seeing encouraging signs regarding the number of properties coming to the market, as well as initial buyer interest on properties – there is a need for overall financial confidence from consumers to for the ‘housing equation’ to fully work.”
Iain McKenzie, CEO at The Guild of Property Professionals
“Today’s HMRC figures show a market that is regaining its footing. Residential transactions in December running 5–7% higher than a year ago underlines that activity remained resilient despite the uncertainty that characterised the final quarter of 2025.
“While volumes were broadly flat compared to November on a seasonally adjusted basis, the year-on-year improvement is a clear sign that confidence was already starting to return.
“We’ve seen that momentum carry into the start of this year. Many buyers who paused their plans ahead of the Autumn Budget have since re-entered the market, encouraged by greater stability, easing mortgage rates and the Bank Rate cut to 3.75% in December.”
The portals
Jason Tebb, President at OnTheMarket
“Transaction numbers remain steady as the housing market demonstrates resilience, despite many wider economic and political concerns.
“The series of interest rate reductions from the Bank of England have provided reassurance for buyers and sellers, and helped ease affordability.
“Further rate reductions this year will only strengthen the market and encourage those planning to move, enabling them to plan ahead with more confidence,” he says.
Richard Donnell, Executive Director at Zoopla
“Home buyers agreed housing sales at an increasing rate over 2025 building the largest pipeline of sales working their way to completion since the pandemic. This is why there were over 100,000 residential transactions in December 2025, up 5% on the year before.
“Zoopla data shows that 2026 has got off to a slower start than a year ago with slightly fewer buyers and new sales, but there are clear signs that momentum is building. There is a strong desire to move home, but buyers remain cautious and price sensitive.”