The number of property transactions in the UK rose by just 1% in August compared to the previous month, HM Revenue and Customs (HMRC) has found.

In its house property transaction data, HMRC found that year-on-year, the provisionally seasonally adjusted estimate of the number of UK residential transactions in August was 87,010. This is 16% lower than a year previous.

Personal finance analyst at interactive investor, Myron Jobson, said: “The modest 1% uptick in transaction volumes month-on-month, seasonally adjusted, does not necessarily suggest that the property market is turning. Instead, it shows that there is still a sizeable cohort of buyers who are able to move up the property ladder despite the harsh market conditions.

“Mortgage rates and inflation remain very high by historic standards, creating a perfect storm of financial uncertainty that can make the housing market look less appealing. This discourages potential homebuyers from entering the market or upgrading to larger homes because their monthly mortgage payments will be significantly higher. ‘Stay put’ appears to be the prevailing sentiment among buyers and homeowners alike who still cannot make the numbers work.”

The statistics provide monthly provisional estimates of residential and non-residential property transactions in the UK and its constituent countries.

These figures are based upon records by HMRC, Revenue Scotland and the Welsh Revenue Authority for stamp duty land tax, land and buildings transaction tax and land transaction tax.

For non-residential properties, the number of transactions estimated to have taken place in August was 9,870. This is 3% lower year-on-year and 4% higher than the number of estimated sales in July 2023.

Head of business development at Saffron for Intermediaries, Tony Hall, said: “It’s positive to see that property transactions in August have increased, especially when the summer is traditionally a slower time for the market. When combined with the fact that the Bank of England base rate hasn’t increased further, this may provide a much-needed boost to consumer sentiment.”

“Swap rates are far less volatile now than earlier in the year, and many lenders have factored in future base rate rises. As a result, we’ve seen fixed rates being repriced downwards.

“However, we have seen a rise in gazundering – a process where a buyer lowers the offer made on a property just before the exchange of contracts. This is a rising concern in the industry which has resulted in some purchases falling through. This can happen when a buyer finds issues with the property during the surveying process. Reforms to the house buying process in England to introduce a home report, similar to the Scottish system, could be a suitable solution to this problem.”

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