However, on a seasonally adjusted basis, this was one per cent higher than the same month last year.
On a non-seasonally adjusted basis, 108,960 residential transactions were recorded. This was a one per cent drop on the same month in 2021 and three per cent lower than November.
HMRC said residential transaction levels in the UK had been stable in recent months but weaker in December. However, it noted that completions were still higher than pre-pandemic levels. For example, there were 99,510 transactions in December 2019.
For the financial year so far starting from April 2022, there have been a total of 938,350 residential transactions in the UK.
A robust market
Property professionals said the figures suggested the market was still doing well but the next few months would set a clearer scene.
Tomer Aboody, director of MT Finance, said with transactions staying relatively stable over the year, it was an “encouraging indication as to the state of the British property market with buyers still pushing transactions and sales”.
He added: “Whereas pricing might be slightly down and completion times are taking slightly longer, many buyers are still looking to proceed with their purchase in order to take advantage of pre-agreed mortgages with lower rates, secured earlier on in the year.”
“How transaction levels will look in a couple of months’ time could be very different, however, due to higher mortgage rates and fewer buyers prepared to pull the trigger.”
Karl Wilkinson, CEO at Access Financial Services said: “This morning’s housing transactions figures suggest that Q4 2022 was more robust than the doomsayers predicted. Despite rising mortgage rates, and energy cost concerns, consumers were still ready to borrow.
“The cost-of-living crisis will certainly play its part in where we go from here. Advisers must focus on providing knowledge and support to those looking to move or remortgage, including the reported 1.5m people due to come off fixed-term mortgages this year. We are not out of the woods, advisers must be ready to respond to demand and provide much needed professional support and advice.”
Clare Beardmore, director at Legal and General Mortgage Club, said the sector would have to wait to see the full impact of last year’s market volatility but for now, transaction levels were healthy.
She added: “Our market is not without its challenges, however, there are plenty of reasons to be positive for the year ahead. Average mortgage rates have begun to fall again and lenders are keen to add to their loan books in a competitive lending market, which is all good news for consumers and represents a big opportunity for advisers to show their value.”
