UK home sales fell by 5 per cent in January, marking the first significant decline since last summer, according to HM Revenue and Customs (HMRC). A total of 94,680 transactions were recorded, down from 99,710 in December 2025. The figure was also marginally lower, by less than 1 per cent, than the 95,430 sales in January 2025.
Industry experts offered mixed views on the data. Nick Leeming, chairman of Jackson-Stops, described the dip as a 'slight cooling in momentum', noting that buyers remain cautious after instability late last year. However, he added that momentum is building in northern markets, with his Alderley Edge branch seeing exchanges double in January.
Ian Futcher, a financial planner at Quilter, pointed to improving economic conditions, including falling inflation and the prospect of a Bank of England base rate cut next month, which could ease borrowing costs. He said lenders have already trimmed fixed-rate deals in anticipation, and if inflation continues to cool, mortgage rates could drift lower through spring and summer.
Nicky Stevenson of Fine & Country attributed the monthly fall partly to seasonal patterns, noting that January is traditionally quieter. She highlighted that transactions were only marginally lower year-on-year, which she called 'an encouraging sign' of steady demand.
Other commentators, including Tom Bill of Knight Frank and Amy Reynolds of Antony Roberts, expressed optimism that activity would recover in coming months as mortgage rates head lower and pent-up demand is released. Jason Tebb of OnTheMarket noted that an increase in sellers bringing homes to market this spring should keep prices in check, aiding first-time buyers.
