UK property transactions slowed in August after three months of steady gains, according to the latest HMRC figures.

RESIDENTIAL MARKET

Seasonally adjusted residential transactions fell to 93,630 in August, down 2% on July but 2% higher than in August last year.

On a non-seasonally adjusted basis, 103,610 deals were recorded – 2% up on July but marginally below the same month in 2024.

Analysts said the figures reflected a market holding steady but vulnerable to shifts in sentiment.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “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.”

Richard Pike, chief sales and marketing officer at Phoebus Software, pointed to the impact of the Bank of England’s August rate cut: “This slight rise in non-seasonally adjusted residential transactions is hopefully a sign that confidence is starting to return to the market.

“The August rate cut… is likely beginning to filter through and we should see further momentum in completions over the coming months.”

Simon Webb, managing director of capital markets and finance at LiveMore, said later life borrowers remained an untapped source of demand: “For later life lending, the opportunity is clear. Borrowers aged 50 to 90+ still face limited awareness of their options, but demand is there.”

Jonathan Stinton, head of mortgage relations at Coventry Building Society, warned that uncertainty ahead of the 26 November budget could weigh on activity: “As we get closer… buyers may be tempted to push pause on their decisions in case Stamp Duty is scrapped and they save thousands of pounds overnight.”

Holly Tomlinson, financial planner at Quilter, said affordability pressures continued to cap enthusiasm: “After a run of monthly increases over the summer, activity cooled in August as higher borrowing costs continue to weigh on buyers.”

NON-RESIDENTIAL MARKET

The non-residential sector showed sharper weakness. Seasonally adjusted transactions fell to 9,910 in August, 3% down on July and 2% below a year earlier. On a non-seasonally adjusted basis, the total dropped to 9,190 – 13% lower month-on-month.

Tomlinson said the slowdown in commercial deals reflected wider unease: “This suggests business investment in property is slowing, reflecting broader economic uncertainty ahead of the budget.”