According to the latest figures from HMRC, seasonally adjusted residential transactions are 13% higher than January 2025’s figures.
The “considerable increase” was attributed to upcoming stamp duty changes.
The non-seasonally adjusted estimate of residential transactions stood at 90,420, which is 24% higher than February 2024 and 10% higher than January this year.
The report noted that in the year to date, there were around 1.04 million seasonally adjusted residential transactions, which compares to 914,940 in the same period last year.
On a non-seasonally adjusted basis, so far there have been around 1.05 million residential transactions, a rise from 913,480 compared to last year.
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Peak in residential transactions expected but drop-off on cards
Richard Pike, chief sales and marketing officer at Phoebus Software, said a peak in February residential transactions was “expected as buyers rushed to complete purchases ahead of the stamp duty deadline, mirroring trends seen before previous tax changes”.
He continued: “While this has contributed to the uplift in today’s figures and is likely to be repeated in March data, we may see a slowdown in April as the market adjusts. Despite this, transaction levels remain significantly higher than this time last year, suggesting underlying demand is still strong.
“With interest rate cuts this year providing some support but broader economic pressures weighing on affordability, the coming months will be key in assessing whether market momentum can be sustained.”
Base rate reductions will boost housing market confidence
Mark Harris, chief executive of mortgage broker SPF Private Clients, agreed that the transaction numbers have “picked up on the back of rate reductions and buyers trying to take advantage of stamp duty savings before they disappear at the end of this month”.
He continued: “The market remains quite tough, but business continues to pick up as the sun comes out and the weather starts to improve.
“Rate reductions are a great way of boosting confidence and activity in the housing market, as we saw with the base rate cuts in the second half of last year and the reduction earlier this year. Further reductions from the Bank of England will help improve confidence and affordability, particularly once the stamp duty concession has ended.”
