July saw a monthly fall of 62.8% in the number of residential property transactions across the UK, new HMRC figures have revealed.

HMRC’s provisional seasonally adjusted estimate of 73,740 for July was still 4.2% higher than July 2020.

For non-residential transactions, the data showed that July’s seasonally adjusted estimated hit 9,760. This figure was 21.0% higher than July last year, but reflected a monthly fall of 5.9% on June’s total.

HMRC advised caution when interpreting its latest data, with estimates for the latest month based upon incomplete data as not all Stamp Duty Land Tax returns, as well as returns for Land and Buildings Transaction Tax in Scotland and Land Transaction Tax in Wales from completed transactions during that month had been received when figures were compiled.

Commenting on the figures, Just Mortgages national operations director, John Phillips, said: “While transactions were always going to dip in July, the number of moves shows the market was not entirely driven by stamp duty savings.

“We are still on track for the most transactions in a calendar year for over a decade, and while some of the urgency to move may have faded, the desire is still there.

“Our brokers are reporting strong interest still, and since the stamp duty holiday has ended, more first-time buyers may look to jump on the ladder as competition reduces somewhat.

“Prices are still high however as there are roughly 15 buyers for every property on the market, and even if that reduces, properties with gardens are still going to attract bidding wars.”

Hargreaves Lansdown personal finance analyst, Sarah Coles, added: “The stamp duty holiday didn’t create demand from nowhere. There was already a crowd of people ready to buy because of changes in how we wanted to live, and pent-up demand from the closure of the market during the first lockdown. The tax break just opened a window of eight months, through which this crowd of people tried to squeeze. Eventually this was extended and tapered, but it kept the pressure up.

“It meant a bulge in property sales, and the fact there were fewer sellers than buyers at a time of such massive demand, pushed prices through the roof.

“All eyes will be on what happens next to the market, as this psychological boost is removed. Sales have fallen, and price rises are showing signs of slowing.”

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