
The number of UK residential property sales edged down to 93,630 in August, slipping back by 2% compared to July, official transaction figures show.
However, August’s figure was 2% higher than a year ago, according to provisional seasonally-adjusted data from HM Revenue & Customs.
It follows three consecutive months of increases in the number of property sales transactions since there was last a dip in transactions in April.
Commercial transactions were 2% lower in August than a year earlier and 3% lower than in July at 9,910.
SPF Private Clients chief executive Mark Harris says: “Transaction numbers dipped slightly in August but stability and consistency in the mortgage market is encouraging activity and enabling borrowers to plan ahead with more confidence.
“Some lenders have been raising their mortgage rates slightly while others have been tweaking downwards and borrowers on the whole have got used to this higher rate environment.
“While we’ve had five base rate cuts in the past year, with more expected, the era of rock-bottom rates is long gone.”
North London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says: “A first glance at these figures, which helpfully cover cash and mortgaged sales, might make you think the market is demonstrating better-than-expected resilience.
“But don’t be fooled – these transactions reflect activity from the past few months so don’t take much account of recent uncertainty prompted by speculation about Budget content.
“Since then, some buyers and sellers, particularly of more expensive flats and houses, have been pressing the pause button although the overwhelming majority of our sales are continuing albeit more cautiously.”
Jackson-Stops chairman Nick Leeming says: “We may still be a distance away from the Autumn Statement, yet speculation around housing policy reform is already weighing on the market.
“Proposals under consideration include replacing stamp duty with a national property tax on homes over £500,000, potentially shifting the burden to sellers.
“While this could improve mobility for buyers, it risks discouraging downsizing among older homeowners, a part of the market our research revealed is highly sensitive to stamp duty changes.
“Our latest insights highlighted stamp duty relief for downsizers could bring over half a million homes to the market within just 12 months, delivering much needed market fluidity and wider economic activity.”