UK residential property transactions climbed in November 2025, pointing to stabilising market sentiment after a turbulent year shaped by mortgage volatility and tax changes. For landlords weighing acquisitions or disposals, the data suggests buyer confidence is re-emerging just as borrowing costs begin to ease.
UK residential transactions and what they mean
HMRC’s latest release shows 100,350 seasonally adjusted residential transactions in November – 8% higher than a year earlier and 1% above October’s level. This marks the strongest month since March 2025, indicating that activity is starting to normalise after a stop-start year driven by rate movements.
When viewed without seasonal adjustment, transactions fell 12% month-on-month, which HMRC attributes to typical late-autumn cooling.
The seasonally adjusted uplift is the more telling measure. Rising sales volumes often signal improving financing conditions and renewed buyer appetite – conditions that historically correlate with stronger rental demand and healthier portfolio churn.
ONS rental data already showed average rents running £87 per month higher year-on-year (equivalent to 7.6%) heading into the winter, giving landlords a buffer as fixed-rate mortgage products slowly reduce in price.
Non-residential transactions: commercial demand strengthens
The data also points to firmer commercial market activity. HMRC recorded 11,700 seasonally adjusted non-residential transactions, 13% higher than October and 20% higher year-on-year.
Analysts note that movements around fiscal events, including Budget 2025, often prompt accelerated decision-making – a trend seen last year too. For mixed-use landlords and investors with commercial units, rising transactions typically indicate recovering business confidence and improving tenant demand.
Non-seasonally adjusted non-residential figures were broadly flat against October, but the annual uplift reinforces the wider message: the investment environment is gradually stabilising.
Market sentiment improves as rates and inflation ease
According to Nathan Emerson, CEO of Propertymark, the latest increases are “an encouraging sign for the housing market and suggest that buyer confidence has begun to return.” He argues that easing inflation and borrowing costs allowed previously hesitant buyers to resume their search in the run-up to Christmas.
His assessment mirrors what many letting agents have reported locally: enquiry levels picked up noticeably once lenders began cutting fixed-rate products in early Q4. In the North West, one agent told Propertymark that landlord enquiries for two- and three-bed homes rose 11% month-to-month, a marked shift from the quieter summer.
This aligns with UK Finance data showing 32,000 buy-to-let remortgages in Q4, the highest quarterly figure of 2025. As refinancing risk cools and yields remain supported by undersupply, landlords may find 2026 offers more predictable conditions than the year just passed.
Editor’s view
Transactions data is never the whole story, but this month’s rise lands at a useful moment for landlords. After a year defined by uncertainty, the numbers show a market slowly regaining its footing. If rates continue edging down and house prices remain steady, 2026 could be the year when investors finally feel able to move again.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance.
Published: 9 January 2026
Sources: HMRC Monthly Property Transactions; ONS Rental Price Index; UK Finance; Propertymark commentary.
Related reading: Market rent growth edges up 2% as landlords brace for 2026 shift
