The estimated number of UK residential transactions totalled 103,610 in August, which is a 1% drop year-on-year, HMRC has revealed.

Its latest property transaction data estimated that this figure increased by 2% month-on-month, following a rise of 5% in July.

HMRC’s monthly estimates are based on its own records as well as those of Revenue Scotland and the Welsh Revenue Authority, for Stamp Duty Land Tax (SDLT), Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) in each of the three nations, respectively.

The non-seasonally adjusted estimate of non-residential UK transactions totalled 9,910 in August, which is a year-on-year drop of 5%. This figure also dropped by 13% month-on-month.

Growth director at Target Group, Melanie Spencer, said the latest month-on-month residential figures are a positive sign for the market, particularly given the wider economic picture at play.

She added: "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."

Chief executive officer at Propertymark, Nathan Emerson, added: "People need to feel a greater degree of confidence as they approach their next house move, and continued economic uncertainty and high interest rates have no doubt deterred some consumers from doing so.

"With interest rates slowly edging back downward, which has helped improve mortgage products on offer, and with house prices showing initial indications that they are starting to soften as we head in autumn, we now look to the Budget in November and next Bank of England decision on the base rate, as both of these factors will play a big part in determining the level of confidence people have moving forward."

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