The number of UK residential transactions in July 2023 is estimated to stand at 86,510, 16% lower than July 2022, HM Revenue and Customs (HMRC) has found.

However, the provisional seasonally adjusted estimate has also found that the figure has also risen by 1% compared to June 2023.

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.

It has also been estimated that the number of UK non-residential transactions in July 2023 were 9,770, which is 6% lower than in July 2022. However, this is 3% higher than in June.

Mortgage expert at Quilter, Charlotte Nixon, said: “The provisional seasonally adjusted figures for UK residential transactions in July 2023 show a significant drop of 16% in comparison to July 2022 and only a minor increment of 1% from June 2023 during what should be a typically busy time for purchases.

“Continuing economic pressure and lingering high inflation makes any hopes of achieving anything like the same level of property transactions to a couple of years ago a slim possibility in the near future. While we can hopefully anticipate a tapering of inflationary pressures in the coming months, the weight of escalating mortgage rates continues to hamper transactions.

“As aspiring homeowners grapple with the increasing financial burdens of property ownership, it becomes even more daunting to make a move on the property ladder. This lack of first-time buyers glues the whole market up. The BoE’s recent decisions, including previous rate hikes, are magnifying these challenges. As lenders adjust their terms, we might witness an even sharper rise if there are further monetary policy shifts.

“Current mortgage rates, having experienced their own set of fluctuations but are settling somewhat. The housing market thrives on certainty and if rates can achieve some long-term sense of normalcy rather than the significant spikes we have been seeing in recent months then this will help with future transactions even if rates do remain elevated.

“With house prices having cooled slightly in response to waning demand, the trend might continue with sellers becoming more flexible in their pricing to attract potential buyers. In such volatile times, it's ever more crucial to engage with a seasoned mortgage adviser to guide your decision making in this challenging financial landscape.”

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