The number of UK residential transactions were 95,980 in September, 4% higher than a year ago, HMRC data shows.
Jason Tebb, president of OnTheMarket, said: “The market remains remarkably resilient despite wider economic and political concerns.
“The series of interest rate reductions over the past year has provided reassurance for buyers and sellers alike, while last month’s rate hold suggests a stable rate environment which is further helping confidence.
“Pre-Budget speculation over tax changes is creating some uncertainty, although many are proceeding with transactions regardless.
“Any government efforts to help make the home-buying journey more accessible and affordable are welcome but any changes introduced in next month’s Budget must work for the market as a whole.”
The government and Treasury are thought to be considering a range of property tax increases in the 26 November Budget – including a 1% Mansion Tax on homes worth more than £2 million.
Nick Leeming, chairman of Jackson-Stops, said: “Today’s transaction results are indicative of a housing market that has slowed in the run up to the budget, but remains fundamentally strong driven by lifestyle purchases.
“Sales agreed are up 1% from the month previous, a modest increase but one that indicates market stability.
“At the top end, many £2 million-plus movers remain in a holding pattern ahead of any possible tax reforms, with calculators in hand to see if a reset in tax could shift the numbers and impact any immediate plans.”
Richard Sexton, commercial director of proptech surveyor portal HouzeCheck, questioned whether it makes sense to take a ‘wait and see’ approach to the Budget.
He said: “The numbers would be higher if people weren’t hanging back for the Budget. And that doesn’t necessarily make sense.
“I think there’s next to no chance, for instance, that Rachel Reeves is going to introduce some radical new solution to taxing property – replacing council tax, say, with an annual levy based on a proportion of the value of each home.
“That would represent a revolutionary overhaul of the way property is taxed: the government doesn’t have the appetite for it. And we’re not going to get a land value tax applied equally to all land, whether or not a house has been built on it – not in a million years.”
“But there is an emotional component to the decision to move home or to buy a house. People make irrational decisions and get scared even when they don’t need to.
“Once the Budget is out of the way, I think we are going to see a lot of pent-up demand bursting out of the gates.”