Housing market enjoys best month for nearly a year
The latest HMRC transactions data shows February was the most active month since the spike ahead of a Stamp Duty deadline last year.
The housing market in February enjoyed its best month in almost a year, property deals data from HMRC has revealed.
The latest figures are the most healthy since March last year when there was a spike ahead of a Stamp Duty deadline.
The results do not include numbers since war broke out in the Middle East at the end of February.
Higher transactions
Seasonally adjusted residential transactions in February were 6% higher than January, rising from 96,940 to 102,410.
Non-seasonally adjusted transactions increased by 7% in February relative to the previous month, according to HMRC.
This week, it was revealed that mortgage approvals were up in February, although the number was below the recent average.
Loans for house purchases increased to 62,600 from 60,200 in January, below an average of around 63,500 during the previous six months, according to the Bank of England.
Industry reaction
Nick Leeming, Chairman of Jackson-Stops, says: “February’s HMRC property transactions data points to a housing market that remains resilient.
“Activity levels suggest a measured start to the year, with buyers proceeding thoughtfully as mortgage rates continue to fluctuate, encouraging a more considered and deliberate approach to decision-making,” he says.
“This marks a clear contrast to the same period last year, when buyers were actively rushing to complete transactions ahead of the Stamp Duty changes introduced in April 2025. That surge in activity inevitably pulled forward a degree of demand.
“Across our network, we have recorded a noticeable increase in new instructions, particularly in coastal locations and well-connected commuter hotspots.”
Recent spike
Tom Bill, Head of UK Residential Research at Knight Frank, says: “Transactions were picking up earlier this year as spring approached and the uncertainty caused by November’s Budget was disappearing into the rearview mirror.
“The recent spike in mortgage rates as a result of the Middle East conflict will have a delayed impact on the housing market as higher rates feed through over the next several months, putting downwards pressure on sales volumes and prices,” he says.
“The extent to which demand is kept in check depends on the length and severity of the conflict and how the Bank of England calibrates its response.”
