UK residential transactions in August came in at 87,010, edging up 1% on July, making it the third month in a row that deals have lifted, data from HMRC shows.  

This seasonally adjusted estimate is, however, 16% lower than a year ago, says the government’s customs body.  

However, property experts are cheered by the rise in deals in the traditionally quieter summer period and, until recently, rising mortgage rates.  

The data comes after the Bank of England’s Monetary Policy Committee held the base rate at 5.25% earlier this month, in a narrow 5-to-4 vote, following its previous rise on 3 August.      

Many economists had expected a further 0.25% hike before the committee would consider how its previous 14 consecutive rate rises were feeding through the economy, as it battles inflation.      

Many lenders have taken this as a sign that the Bank is nearing the end of its rate-raising cycle and are cutting mortgage rates.   

Also, the cost of living unexpectedly slowed to 6.7% in the 12 months to August this month – down slightly from 6.8% in July.    

MPowered Mortgages chief executive Stuart Cheetham says: “Today’s figures are a positive sign for the market, and with the Bank of England’s decision to break the cycle of raising interest rates, we can expect mortgage rates to trend in a more favourable direction for prospective buyers.   

“Although inflation is projected to come down to 5% by the end of the year, sellers are still having to adjust their pricing to align with buyer expectations, maintaining the view of a buyers’ market. With this in mind, we anticipate a growth in transactions in the forthcoming months, especially after the summer period.”  

Saffron for Intermediaries head of business development Tony Hall adds: “It’s positive to see that property transactions in August have increased, especially when the summer is traditionally a slower time for the market.   

“When combined with the fact that the Bank of England base rate hasn’t increased further, this may provide a much-needed boost to consumer sentiment.  

“Swap rates are far less volatile now than earlier in the year, and many lenders have factored in future base rate rises. As a result, we’ve seen fixed rates being repriced downwards.”