UK residential transactions in July were up 4% to 95,580 on a year ago and were 1% higher than June, HMRC provisional seasonally adjusted estimates show.
Non-UK residential transactions last month were up 1% to 10,260 on a year ago and were also 1% higher than June.
The data comes after the Bank cut the base rate by a quarter point to 4% from earlier this month, taking the interest rate to its lowest level since March 2023. It is also the third cut this year and the fifth since last August.
It also comes after several reports that Chancellor Rachel Reeves is considering plans for a tax on homes worth over £1.5m as part of plans to close a large hole in the public finances.
The move would see homes sold above that price subject to a capital gains tax at 18% for basic-rate taxpayers and 24% for higher-rate taxpayers.
Also, Reeves is understood to be weighing up introducing a new tax on the sale of properties worth over £500,000 as part of wider stamp duty and council tax changes.
Zoopla executive director Richard Donnell says: “Housing sales are steadily increasing as mortgage rates have stabilised and buyers have been given a boost to buying power from less stringent affordability requirements.
“The market is on track for 5% more sales in 2025 at 1.15m, the highest since 2022. This is despite property tax speculation and mortgage rates drifting higher.”
SPF Private Clients chief executive Mark Harris adds: “Transaction numbers have risen again as cheaper interest rates encourage activity and enable borrowers to plan ahead with more confidence.
“Despite another rate cut earlier this month from the Bank of England, some lenders are repricing upwards, including NatWest, Santander and Coventry, while HSBC has reduced rates.
“The mixed picture is down to rising swap rates, which underpin the pricing of fixed-rate mortgages, and lenders not wanting to offer the best rates during the summer months when staff are away on holiday and resources are more limited.”
L&G director of distribution and mortgage club, mortgage services, Clare Beardmore points out: “This encouraging uplift in transactions suggests growing confidence in the market, and our broker data shows a significant increase in buyers of all ages looking to step onto the property ladder for the first time.
“Lenders are continuing to respond to shifting borrower demands with new and innovative mortgage product offerings, and potential policy changes may be around the corner, which could support buyer affordability too.”
