The number of UK residential property transactions in September 2025 reached 95,980, up 0.4% year-on-year, according to the latest HMRC data.
In contrast, UK non-residential transactions for the same period totalled 9,910, down 4% compared with a year ago and slightly below August levels.
The figures come ahead of Chancellor Rachel Reeves’ 26 November Budget, where the Treasury is reportedly considering a range of property tax measures to help address an estimated £22 billion shortfall in public finances.
Proposals under consideration include a new tax on the sale of homes valued over £500,000 and a local annual property levy to replace council tax over an unspecified phased period. Landlords could also be affected by a plan to apply National Insurance contributions to rental income, which the Treasury estimates could raise £2bn.
Industry reaction:
Neil Knight, divisional director at Spicerhaart Part Exchange and Group Clients: “While non-seasonally adjusted figures are up on the previous year, a dip in monthly residential transactions will certainly give many a fright today. Despite the best efforts of lenders and developers, there will be buyers and sellers still firmly in a holding pattern ahead of the upcoming Budget, awaiting further clarity on economic policy. However, this doesn’t necessarily signal a lack of underlying demand. Instead, a good number of buyers have been quietly getting on with the job of buying and moving – buoyed by incentives and support offered by lenders and developers in the new build space.
“As we edge closer to the Budget and beyond, this is something that must continue in earnest. We have been encouraged by increasing uptake among developers of both part exchange and assisted move schemes. If households budgets do get squeezed post-Budget, these pathways will prove absolutely vital in minimising the stress and expense of a house move, helping to grease the wheels and keep transactions moving in a positive direction.”
Tom Bill, head of UK residential research at Knight Frank: “Housing market activity has been flat in recent months, with demand supported by stable and broadly affordable mortgage rates. However, a two-speed market has developed as the Budget approaches, with buyers and sellers in higher-value markets hesitating due to uncertainty around property taxes. The risk is that momentum is gradually sapped from the wider marker after 26 November as sentiment weakens and the tax landscape deteriorates.”
“We expect transactions to start to plateau now they are back in line with the long run average of 1.2m sales a year.
Nick Leeming, Chairman of Jackson-Stops: “The transaction results are indicative of a housing market that has slowed in the run up to the budget, but remains fundamentally strong driven by lifestyle purchases. Sales agreed are up 1% from the month previous, a modest increase but one that indicates market stability. At the top end, many £2 million-plus movers remain in a holding pattern ahead of any possible tax reforms, with calculators in hand to see if a reset in tax could shift the numbers and impact any immediate plans.
“But with every slowdown comes opportunity. We’re seeing more homes on the market than last year; a welcome change for buyers who’ve long been starved of choice over the past two years. Whilst Jackson-Stops’ own national data points to a more selective market, the picture is far from uniform. Outside the South East, activity in the £500k to £800k range is bucking the trend, with momentum building in several regions.
“Historically, what transaction data tells us is that whenever there is a change in SDLT, the market reacts exceptionally fast. In March this year, for example, we saw a spike in exchanges ahead of the threshold reduction deadline, with transactions dipping ever since. What matters now is keeping transactions flowing. A stable level of movement underpins much more than just estate agents — from conveyancers to removal firms to retail, housing fuels a vital sub-economy. Any changes in taxation must be carefully calibrated against their economic benefit. Over the past decade, house prices have surged 60% while wages have barely climbed 10%. There is an argument that capturing net wealth through house values risks missing the mark in a nation that’s often asset rich but cash poor. We support fair reform, but it must encourage growth, mobility and aspiration in equal measure.”
Iain Mckenzie, CEO of The Guild of Property Professionals: “The latest transaction data offers a reassuring sign that confidence is steadily returning to the housing market. This growth, coupled with a nine-month high in mortgage approvals and a further easing in borrowing rates, points to a market that is quietly regaining momentum.
“Even though many are taking a cautious stance ahead of the Autumn Budget, buyers are responding to improving affordability and more stable mortgage conditions. The Bank of England’s rate cuts have helped to unlock activity, while the increase in available stock and more realistic pricing are creating a healthier balance between supply and demand.
“We’re seeing that well-priced homes continue to attract strong interest. Properties that don’t require a price reduction are selling three times faster than those that are adjusted later, which underlines the importance of accurate, data-led pricing from the outset.
“While uncertainty remains around future fiscal policy, the fundamentals are encouraging. Provided there are no major policy shocks, we expect steady progress to continue through the end of the year and into early 2026, with regional markets performing in line with local affordability dynamics.”
Andrew Lloyd, MD at Search Acumen: “The data shows that homebuyers are continuing to exchange from deals likely arranged in the early part of the year. A steady level of these transactions, up slightly from the usual summer lull, represents a broadly stable residential market. But this is just half a story, with a sharp drop in current buyer activity pre-Budget likely to impact transactional data towards the end of the year. Currently, this is a market in freeze. The typical Autumn bounce is likely to remain lacklustre until tax reform is announced and financial impacts can be weighted, with homeowners hoping Budget day does not turn into fright night.
“In a similar vein, commercial transactions remain unseasonably subdued down 2–3% on last year, reflecting continued caution from investors amid higher financing costs and economic uncertainty.
“We know prime office demand is stabilising, where secondary office markets are expected to see a decline in value, with a similar pattern happening within industrials. Alternative markets are seeing a growth in transactional trends, particularly in data centers and living sectors.
“Like in residential, the big driving force in commercial real estate is policy change. Markets crave certainty with investors often taking a hold position until wider confidence returns. The upcoming announcement on business rates will have a significant impact on London markets, whilst policies on rent reviews and planning will determine some key investor decisions.
“With what feels like economic confidence walking on a tight rope until the Budget, it is crucial that the Chancellor outlines reform to stimulate markets, not hold them back. Either way, clarity will be a welcome reprieve after November 26th.
“For lawyers, conveyancers, and property professionals, administrative inefficiencies and slow processes continue to extend timelines and increase the risk of deal fall-throughs. In nervous markets, deals are more likely to fall out of bed. Now is the time to get ahead, tighten processes, and reduce risk using AI tools. Greater accuracy and efficiency are important cornerstones in turning cautious activity into sustained recovery.”
Read the orginal article: https://propertyindustryeye.com/housing-transactions-see-4-annual-rise-in-september-hmrc/
