The number of residential transactions fell by 2 per cent over August as momentum dwindles with Budget approaching, data from HM Revenue & Customs has revealed.
Data found that the number of seasonally adjusted UK residential transactions fell to 93,630, a 2 per cent drop on a monthly basis.
However, this is still 2 per cent higher than the number of transactions recorded in August 2024.
Similarly, non-seasonally adjusted transactions also rose on a yearly basis, increasing by 2 per cent when compared to July to 103,610.
Trinity Finance managing director, Omer Mehmet, said that these latest findings represent the housing market “moving sideways”.
“A 2 per cent rise on last year looks good on paper, but it masks a market running on fumes,” he explained.
“Buyers aren’t holding back because of rates alone, it’s the policy vacuum that’s paralysing decisions.”
A similar sentiment was shared by OneDome CEO, Babek Ismayil, who pointed out that there was a “fair amount of momentum” in the spring and summer but this has seemed to dwindle over August.
He added that with an upcoming Autumn Budget, transaction levels could stay relatively “muted”, but, at the same time, more people are recognising that the current market is a “buyers’ market”.
“Buyers seeking out a bargain could actually see transaction levels edge up slightly in the months ahead.”
Meanwhile, Charwin Mortgages director, Ranald Micthell, stated the data shows a housing market “still ticking along” while displaying signs of summer slowdown.
“Overall, the market feels steady rather than spectacular, with activity holding up better than many feared,” he suggested.
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tom.dunstan@ft.com
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