Figures detailing property transactions in January show that the number of transactions fell by 18 per cent from December.However, in contrast to a year earlier, January’s transactions were down 29 per cent.These figures come from the Inland Revenue, following a report by the Royal Institution of Chartered Surveyors (RICS).”A break in interest rates since the last rise in August 2004 has provided a platform of stability which has given greater confidence to prospective buyers,” explained RICS’ economist, Milan Khatri.

“However, further interest rate increases cannot be ruled out. This would keep market conditions restrained throughout 2005.”The four interest rate hikes of 2004 seemed to have made their impression in the property market with the apparent decline in transactions.The main drop in activity occurred in the second half of the year as households faced a 33 per cent rise in mortgage costs over just one year.