The number of residential property transactions in the UK jumped 7.2% month-on-month in July, new HMRC figures have indicated.

Residential transactions totalled 110,970 in July, following HMRC’s estimate of 96,290 for June.

The latest figure is also up by 32.9% up on the same month last year, when the housing market was adapting to the tapered Stamp Duty Land Tax (SDLT) holiday deadline.

HMRC also stated that residential transactions, while stable in recent months, remain elevated above pre-pandemic levels, with the latest estimate of 110,970 in July comparing to 104,780 in July 2019.

For non-residential transactions, HMRC’s figures showed there were 10,380 conducted during July. This represented a 5.1%% increase on June, as well as a 3.8% rise on July last year. HMRC stated that this latest total is broadly in line with historic levels, with 10,520 non-residential transactions on record for July 2019.

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

Commenting on the latest HMRC figures, chief sales and marketing officer at Phoebus Software, Richard Pike, said: “Looking at the non-seasonally adjusted figures in July it is no surprise that the number of transactions in July is higher than in July 2021, given that the SDLT holiday came to an end in June 2021.

“However, we may have expected to see the figures falling in comparison to June this year when interest rates are rising and inflation is raging. To discover that this was not the case and that figures are ‘broadly’ in line with previous transactions in July is heartening. It shows that there is still an appetite to move, buy and sell and that the effect of rising mortgage rates is not the deterrent we might have expected.

Legal & General Mortgage Club head of lender relationships, Danny Belton, described the UK property market as “a patchwork quilt made of various markets that all have unique trends”.

“For example, the prime London market is entirely separate to the wider UK residential market,” Belton said. “However, its inevitable these markets will all be affected by the economic downturn to some extent. There’s no escaping that purchasing power, confidence, and disposable income will likely decrease as we edge towards the end of the year.

“But this isn’t time to panic. The UK property market is one of the most resilient around and is therefore a favourite among investors.”

Managing director of capital markets and finance at LiveMore Capital, Simon Webb, added: “These are the highest July property transaction figures since 2015 and shows there is still demand for housing, even though it has calmed down somewhat since the end of the stamp duty holiday last September, and despite the fact that housing stock still remains low.

“With interest rates and inflation both continuing to rise, it is a good time for home buyers to seriously consider long-term fixed rate mortgages. The certainty of knowing monthly payments won’t rise for a fixed amount of time should bring peace of mind to borrowers.”

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