The number of UK residential property transactions fell by 1% in August 2026 compared with July and 2% lower than 12 months ago, according to the latest provisional figures from HM Revenue and Customs (HMRC).
Seasonally adjusted residential transactions stood at 95,220 in August, down from 96,710 in July.
The non-seasonally adjusted estimate is 11% lower compared with July, reaching 96,250 transactions. This was also 9% lower than transactions recorded in August 2025.
The figures form part of HMRC’s latest monthly property transactions statistics, published on 30 September 2026, covering completed transactions during August.
OnTheMarket president Jason Tebb says: “Activity was muted in August as one might expect for the time of year. Would-be buyers and sellers were distracted by the holidays, as well as ongoing uncertainty created by the Middle East conflict and its impact on energy prices, inflation and ultimately mortgage pricing.”
“The Bank of England’s decision to hold interest rates steady this year has helped confidence but higher mortgage rates, on the back of volatility in Swap rates, have squeezed affordability.”
“Government intervention to encourage transactions is welcome and we look forward to further detail on this in the budget, although indications suggest the new scheme will be restricted to new-build homes rather than apply to the wider market. Raising a deposit continues to be an issue for first-time buyers, particularly those who can’t call upon the Bank of Mum and Dad for assistance, and supporting more first-time buyers should boost activity in the wider market.”
Meanwhile, Zoople executive director Richard Donnell adds: “Housing sales are slowing in the face of higher mortgage rates adding to the cost of buying a home. The sales reported in this data were first agreed 5-6 months ago, with the very latest data showing that sales agreed are 9% lower as mortgage rates reach over 5% having started the year at 4%.”
“There remains demand for housing but sellers looking to find a buy need to set their price carefully and seek the advice of local agents.”
Also commenting, Quilter financial planner Ian Futcher explains: “It is worth remembering that transaction figures are inherently backward looking, reflecting decisions made and mortgages agreed several months ago. Since then, the outlook has become more uncertain, with concerns about inflation persistence, geopolitical tensions and the future path of interest rates all weighing on buyer sentiment.”
“While activity has held up reasonably well given the challenges facing households, expectations around monetary policy have shifted in recent weeks. The prospect of interest rates remaining higher for longer, and the possibility of further tightening, has pushed up swap rates and renewed pressure on mortgage pricing.”
Futcher adds: “The housing market has shown resilience, but confidence remains fragile. Until there is greater clarity on the outlook for interest rates, many buyers are likely to remain cautious, limiting the pace of any recovery in transaction volumes over the coming months.”
