HMRC said transactions had been stable in recent months but still above pre-Covid levels.
For example, non-seasonally adjusted figures showed there were 114,200 transactions in November compared to 110,210 during the same month in 2019.
Non-seasonally adjusted transactions were 12 per cent up on November last year and four per cent higher than October.
HMRC said it should be noted the rise in mortgage rates and the following impact on the housing market were not yet showing an effect on transaction levels, possibly because the sale was made months before and completed in November.
It also said comparing transactions to last year should be done with caution a drop in transactions in September 2021 when the stamp duty holiday ended probably had a sustained impact on activity in November of that year.
A pleasant surprise
Although the transaction figures do not reflect the fallout of the mini Budget and the preceding rising rates, industry commentators said it was positive to see that increasing energy bills and cost of living had not dampened the market too much.
Kay Westgarth, sales director at Standard Life Home Finance, said: “After a complex year economically, nobody can dispute that the soaring cost of living and spiralling interest rates are pinching household incomes. However, today’s figures show another indisputable fact: that the UK housing market has kept a level heading in choppy waters, with property transactions slightly elevated compared to last month.”
Karl Wilkinson, CEO at Access Financial Services said it was a “pleasant surprise” to see an upswing in transactions despite the economic situation.
He added: “We should remain optimistic that falling inflation will provide the catalyst for recovery.”
Richard Pike, chief sales and marketing officer at Phoebus Software, also said the figures were a “little surprising” considering the reports of a declining market.
“It is encouraging to see that the pipeline of transactions continued to increase in the months leading up to the chaos caused by the now infamous mini Budget.
“Whether this trend will continue into the new year is questionable, especially as the winter months will be the most expensive, even with the energy price cap. Lenders will be looking to finish the year and head into 2023 on a high. So, the recent spate of rate reductions could continue, even as the base rate increases. Keeping on top of risk and vulnerability will continue to be a priority though and the technology lenders have in place will come to the fore,” he added.
