Residential property transactions in February this year fell by a fifth when compared with the same month last year, according to the latest data from HMRC.

An estimated 112,240 transactions took place last month across the UK, which was down 20.8% year-on-year, HMRC said.

The total was, however, 4.4% higher than in January 2022.

Around 96,250 homes changed owners in February across the UK, 15.3% higher than in January, the figures show.

Total sales for the first two months of the year stand at 179,900, some 18% lower than the corresponding period last year. But this is still the next highest level since 2007.

Lawrence Bowles, director of residential research at Savills said the latest monthly figures were reflective of “the growing momentum we’ve seen in the market after the winter break”.

He added: “While we are still seeing strong momentum in the market, data on agreed sales shows we are also starting to see stratification in sales activity between different price points.”

Jeremy Leaf, north London estate agent, concurred: “Rapidly rising asking prices are one thing but transactions are quite another and always a better measure of property market health.

“These numbers are no exception and confirm clearly what we have been seeing in our offices – the continuing lack of stock is constraining activity and only supporting the acceleration in prices.

“The good news is that listings are on the up, prompted by the increase in energy prices and interest rates. This should help to better balance supply and demand, as well as keep prices in check.”

Jason Tebb, CEO of OnTheMarket, believes that the latest data suggests that the housing market is adjusting to a ‘new normal’ and distinct from the pre-pandemic market.

He commented: “It’s an elevated, faster-paced version where a large number of highly motivated buyers are keen to move quickly and eager to compete with other likeminded purchasers for the small number of available properties.

“As the weather starts to feel more spring-like, more stock is coming to market but not quickly enough to satisfy pent-up demand from buyers who didn’t make their move last year and remain keen to do so.”

Nick Leeming, Chairman at Jackson-Stops commented: “Whilst the year-on-year figures reflect the absence of the stamp duty holiday incentive, the significant increase from January this year is indicative of a market driven by intent, as the middle to high end of the market continues to press forward with their desire to move home. Of course, supply remains constrained but here we see the first buds of what is a typical flourish of activity in the Spring, with our latest research finding that housing transactions averaged a 28% monthly bounce in March over the last ten years.

“Across our network, we’re seeing that current pricing levels are tempting some homeowners onto the market. Alongside this, we are seeing older customers reviewing the costs of running their homes in later life and who are keen to unlock value for a secure and stable retirement. Taxation is one of the biggest barriers facing property buyers and further reform would encourage fluidity across the buying lifecycle – greater government support to encourage this downsizing generation could have a significant impact in terms of increasing supply for families needing more space.”