Residential property transactions across the UK fell by 3.1% in June compared to May, according to new HMRC estimates.

HMRC’s provisional non-seasonally adjusted estimate reached 96,290 for June, which was a 55.1% fall from the same month last year, when the stamp duty holiday had driven activity across the housing market.

For non-residential transactions, the figures showed there were 8,850 property transactions during June. This total was a 9.5% lower than in May, and a 24.3% drop from June last year.

HMRC’s monthly estimates are based upon 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 nation respectively.

Commenting on the latest estimates, more2life corporate marketing director, Stuart Wilson, said: “After a busy start to the year, property transactions are slowly starting to settle as we reach the mid-point of 2022. Supply and demand issues have contributed to a competitive market with high house prices making the first step onto the property ladder harder and harder for first time buyers to reach.

“The need for intergenerational support is growing ever more necessary, as young people looking to buy their first home are turning to financial help from family during what is such a financially challenging period. Thankfully, with house prices high, over-55s are in a powerful position to support younger first-time buyers, as they have access to equity tied up in their property.”

Head of lender relationships at Legal & General Mortgage Club, Danny Belton, said the figures “showcase the strength of the UK property sector”.

“Despite some fluctuations, the market remains incredibly busy,” Belton commented. “With high levels of remortgage activity as well as purchase, lenders and advisers alike are having to work hard to keep pace with demand from clients. There are, of course, significant regional differences though and market conditions can vary greatly from area to area.

“In such a competitive and, at times, complex market, good advice is worth its weight in gold.”

MPowered Mortgages distribution director, Emma Hollingworth, added: “Whilst the transaction process is stabilising, buyer confidence is undoubtedly being dented by the cost of living crisis, as seen in the declining completion figures.

“With house prices soaring for a sixth consecutive month and rates steadily climbing on a regular basis, speed is essential for those looking to buy a home. Amongst political and economic uncertainty, homebuyers should quickly and efficiently look to lock in mortgages before rates move again.”

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