Residential transactions dip in 2018: HMRC

However on a seasonally adjusted basis, December's transaction figures remain 3.6% higher than in December 2017.

Over the whole of 2018, the number of houses sold fell to 1.19 million from 1.22 million in 2017.

Mike Scott, chief property analyst at Yopa, said: "HMRC have released the numbers for home sales in December, completing the data for 2018. The number of houses sold was 3.6% higher than in December 2017, continuing the upturn that we have seen in market activity since October. The total number of houses sold in the UK in all of 2018 was 1.19 million, only very slightly down on 2017’s 1.22 million.

"The first quarter of 2018 was quite slow, with the bad weather caused by the “Beast from the East” reducing activity in the housing market, and so we expect the year-on-year comparisons to continue to show an increase as we move into 2019. The economic fundamentals for the market are still strong, and affordability has improved, but there is no sign of a renewed house price boom. Assuming that a chaotic no-deal Brexit can be avoided, we therefore expect that overall housing market activity will be much the same as it has been in every year since 2014, with an average of 100,000 homes sold every month."

Mark Harris, chief executive of mortgage broker SPF Private Clients, commented: "December tends to be a quieter month for the housing market than much of the rest of the year as attention focuses on the festivities rather than moving house. Indecision created by Brexit has also contributed to the fall in transactions as would-be buyers and sellers sit on their hands and take a ‘wait and see’ approach.

"Lenders started this year the way they finished the last one - keen to lend and offering some competitive products to encourage borrowers to take the plunge. Those who are in the market for a new mortgage or remortgage will find plenty of attractive deals, with a number of lenders cutting rates in the past couple of weeks. We expect pricing to remain low in the coming few weeks as lenders try to get off to a strong start to the year."

Andy Sommerville, director of Search Acumen, added: “Brexit clearly cast a shadow over the UK property market in the run-up to Christmas, leaving the market flattened as a result. It’s likely the same shadow will extend into January once the first 2019 indicators emerge.

“Uncertainty can quickly mean sales are put on ‘pause’, and some buyers and investors across the country are understandably playing a waiting game ahead of March."