UK property transactions decline 2% year-on-year in August
UK residential property transactions fell 1% in August compared to July, according to the latest HMRC figures, as the market continues to experience subdued activity ahead of the autumn Budget.
Seasonally adjusted transaction figures show 95,220 deals completed in August, down from 96,650 in July. The figure also represents a 2% decline compared to August of the previous year. Non-seasonally adjusted transactions dropped 11% between July and August.
The data marks a continuation of sluggish market conditions following a brief recovery in June, which had ended two consecutive months of decline. July’s figures had already shown a 1% monthly decrease and a 2% annual drop.
Budget uncertainty weighs on market
The decline comes as the property sector awaits Chancellor John Healey’s first Budget on 28th October, with speculation mounting over potential property tax changes that could affect investors and homeowners.
Nicky Stevenson, Managing Director at Fine & Country, noted that “inflation reached 3.1% in August, while the Bank of England has kept the Bank Rate at 3.75%, with the Bank highlighting the impact of higher energy prices on the inflation outlook.”
Iain McKenzie, CEO at The Guild of Property Professionals, said the figures suggest “the traditional autumn pick-up in activity is being tempered by affordability pressures.” He added that mortgage approvals have been running below recent averages whilst the Bank Rate remains at 3.75%.
Market resilience questioned
Andrew Lloyd, Managing Director at Search Acumen, described August as historically a buoyant month for completions, making the 2% annual decline “an unseasonal low.” However, he suggested the figures could also demonstrate “continued resilience” given the uncertain economic backdrop.
Nathan Emerson, Chief Executive of Propertymark, attributed the decline to prospective buyers and sellers “carefully assessing the wider economic outlook” and adopting “a more cautious approach to making significant property decisions.”
The data follows broader concerns about market conditions, with landlords responding to regulatory changes and affordability remaining a central concern for buyers navigating elevated borrowing costs.
Industry observers indicate that whilst underlying demand for housing remains, confidence and affordability constraints continue to influence transaction volumes. The market now awaits clarity from the October Budget before determining whether autumn will deliver the seasonal uplift typically expected during this period.
