UK residential property transactions fell to 94,800 on a seasonally adjusted basis in September 2026, down 4 percent on the same month last year and marginally lower than August, according to HMRC data published today.
The figures point to a market that stalled in the run-up to last week’s Autumn Budget, with buyer caution, higher borrowing costs and wider economic uncertainty holding back activity during what is normally a busier autumn period.
Landlords watching deal flow for portfolio moves faced a thinner market in September, with needs-based buyers still transacting but discretionary purchases delayed and sellers under pressure to price in line with recent local sales.
Budget uncertainty blamed for subdued activity
Andrew Lloyd, managing director at Search Acumen, said the dip suggested more than a “do no harm” Budget had been needed. “As consumer confidence weakens, we should not be surprised that residential activity remains depressed, despite some resilience from needs-based buyers,” he said. “Commercial deals are doing much of the heavy lifting for overall transaction figures, as November’s interest rate decision casts a long shadow.”
Lloyd added that money was moving into commercial real estate, industrial, office and alternative sectors as returns in residential markets came under pressure, newly sharpened by the 4 percent surcharge on rental income confirmed in the Budget.
Affordability pressures keep buyers selective
Nick Leeming, chairman of Jackson-Stops, said September would normally see momentum return after summer but activity stayed subdued. “Uncertainty surrounding the Budget and wider economic conditions continue to influence buyer confidence,” he said. “Demand is still present, but buyers are increasingly selective about what they are prepared to pay.”
Leeming said realistic asking prices from the outset, based on recent local sales and current competition, remained essential for sellers to secure a sale.
Jason Tebb, president of OnTheMarket, said transaction numbers stayed muted as Middle East conflict effects on energy prices, inflation and mortgage pricing combined with fears of higher taxes before the Budget. “The Bank of England’s decision to hold interest rates steady so far this year has helped confidence but higher mortgage rates, on the back of volatility in swap rates, have squeezed affordability,” he said.
Propertymark points to Budget clarity and buyer support
Ian Harris, president of NAEA Propertymark, said it was understandable to see transactions slow month on month and year on year on a non-seasonally adjusted basis after a year of buyer caution and affordability strain. “Wednesday’s Budget has helped provide people with much-needed structural clarity on policy for the forthcoming months,” he said.
Harris welcomed the expansion of the Your First Home scheme in England and the new First-Time Buyer ISA, including the removal of Lifetime ISA withdrawal penalties, as steps that should help savers build deposits and support ownership.
This follows Landlord Knowledge’s report on August transactions falling to 95,220, which already showed buyer caution ahead of the Budget. The September figure of 94,800 extends that soft patch into a second month and underlines how pre-Budget nerves weighed on completions.
Industry reaction also links the slowdown to wider HMRC compliance pressure on landlords, with tax and reporting changes adding to the reasons investors are pausing discretionary deals.
Read the HMRC monthly property transactions commentary for the full September breakdown.
What this means for landlords
- If you are buying: thinner volumes can mean less competition but tighter lender scrutiny – have finance agreed and price offers against fresh local comparables.
- If you are selling: realistic pricing from day one matters more in a subdued market; overpriced stock risks sitting while buyers stay selective.
- Watch for: the Bank of England rate decision next week and how Your First Home demand feeds through to lower-end stock landlords often trade.
- Bottom line: September was a pause, not a freeze – needs-based moves continued while discretionary deals waited for Budget clarity.
Editor’s view
Two soft months in a row tells its own story. Buyers did not vanish in September, they waited. With Budget detail now out, landlords who price honestly and line up finance early will be best placed if confidence steadies into winter.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 2 November 2026
Sources: HMRC, Search Acumen, Jackson-Stops, OnTheMarket, Propertymark
Related reading: HMRC: August property deals fall to 95,220
