The number of UK residential transactions totalled 103,610 in August, 1% lower than August 2024 but 2% higher than July, according to the latest HMRC statistics.
On a seasonally adjusted basis the growth is reversed, with transactions 2% higher than August 2024 and 2% lower than July.
Coventry Building Society’s analysis of the latest HMRC figures shows that residential property transactions in the UK have been running 15% higher for the first eight months of the year compared with the same period in 2024.
Melanie Spencer, growth director at Target Group, said: “The non-seasonally adjusted figures show another uplift in property transactions, which is a positive sign for the market - particularly given the wider economic picture at play. It speaks of the resilience we are seeing among homebuyers and movers, as well as an increasing willingness among sellers to not stand on ceremony and tweak prices to close the deal. Underpinning this is the hard work of lenders to improve access and affordability with enhanced mortgage rules at their disposal.
“What the future holds for property transactions largely depends on what is announced in the Budget, as this will undoubtedly factor into the plans and the urgency of many prospective buyers. Any potential lag or calming could shift quite rapidly – particularly if we do see headline-grabbing changes to stamp duty policy. Such a change will turn up the heat for lenders and place even greater importance on having efficient, scalable and tech-enabled processes in place. For those without, digital transformation and outsourced services will be absolutely key.”
Mark Tosetti, CEO of CAL (part of Movera), commented: “A further uplift in non-seasonally adjusted residential property sales is positive, but activity is likely plateau – or worse – from here until we get clarity on what the Autumn Budget has in store. The Zoopla House Price Index highlighted yesterday that demand for homes over £1m is down 11% and properties over £500,000 is down 8%, likely due to speculation about property taxes. While the wider market is steady, new listings for more expensive properties are also down. The closer we get to Reeves’ announcement, the more hesitancy we will see from buyers and sellers alike.
“Brokers and conveyancers must look to make swift progress now for serious buyers unperturbed by budget speculation, as many will still be looking to take advantage of recent mortgage rate cuts. But it will also be important to brace for momentum to pick up quickly once the budget dust settles."
Jonathan Stinton, head of mortgage relations at Coventry Building Society, said: “It’s been a year of ups and downs for the housing market, but overall transactions have been running higher than last year, which shows just how determined people are to move. Buyers rushed in March, took a breather in Spring, and then came back in force over Summer. That resilience is a positive sign.
“Since the speculation was announced in August, we’ve already started to feel the mood shifting. Conversations with buyers and mortgage brokers suggest some people are beginning to hold back while they wait to see what the Chancellor announces. The housing market doesn’t like uncertainty, and rumours of big changes are enough to make people hesitate – or risk making the wrong choice.
“As we get closer to 26th November buyers may be tempted to push pause on their decisions in case Stamp Duty is scrapped and they save thousands of pounds overnight. That kind of hesitation is understandable, but it creates a stop-start market. If reforms are coming they need to be clear and carefully thought through so people can move with confidence rather than cautiously waiting on the sidelines.”
Richard Pike, chief sales and marketing officer at Phoebus Software, added: “This slight rise in non-seasonally adjusted residential transactions is hopefully a sign that confidence is starting to return to the market. The August rate cut from the Bank of England is likely beginning to filter through and we should see further momentum in completions over the coming months. The key question is what we’ll see from the budget and how the MPC moves in November – trying to balance inflationary pressure with rising unemployment.
“There’s also a structural supply issue at play. The government looks set to fall well short of its 1.5 million homes target by 2029, which could keep prices stubbornly high and limit options for those looking to move.
“This uptick should be seen as encouragement, but it also underlines the need for lenders, policymakers and tech providers to work together to reduce friction in the homebuying process and support borrowers through a challenging economic landscape.”
