The latest HMRC data shows that there were 95,980 residential transactions in the UK in September 2025, an increase of 4% on the same period last year and an increase of 1% on the previous month.
UK non-domestic transaction volumes for the same period were 9,910 units, down 4% on the same period last year and less than 1% on August, according to the customs agency’s seasonally adjusted provisional estimates.
The figures were released ahead of Chancellor Rachel Reeves’s budget on 26 November, where it is understood the Treasury is considering a range of property tax increases to help plug a gap of around £22bn in the public finances.
Simple proposals she is considering include a new property tax on homes worth more than £500,000 and a new local annual property tax to replace council tax over an unspecified phasing period.
Landlords could also be hit by proposals to apply national insurance to rental income, a move the Treasury hopes will raise £2 billion.
Mark Harris, chief executive of SPF Private Clients, said: “In terms of rates, seasonally adjusted transaction numbers have picked up slightly as stability and consistency are encouraging activity and enabling borrowers to plan ahead with more confidence.
“Many lenders have reduced mortgage rates in recent days.
“While we have already had five base rate cuts in the past 13 months, with more cuts expected, the days of rock-bottom interest rates may be long gone, but borrowers appear to have adapted to this.”
Ian Futcher, financial planner at Quilter, said: “Despite the political noise and speculation surrounding the policies the chancellor may announce next month, many buyers are continuing to buy.
“Markets appear to have accepted that higher borrowing costs are here to stay and that stable, not cheap, credit is the new basis for confidence.
“There remains a sense of caution on the surface, with some sellers hesitant after the Budget until the dust settles, but the underlying picture is relatively positive. As the year draws to a close, the property market looks less like it is bracing for a storm and more like it is learning to adapt to the weather.”
Tony Hall, head of business development at Saffron for Intermediaries, added: “Today’s figures underline the continued resilience of the housing market. Despite debate over the summer around potential stamp duty reform and wider political discussions around property tax, confidence in next month’s Budget remains strong.
“With inflation remaining stable and speculation growing about a potential base rate cut, lenders may soon be ready to cut rates further, providing a welcome boost to borrowers.
“The upcoming budget will play a key role in shaping market dynamics and buyer sentiment as we enter a critical period of economic and policy change.”
