HMRC’s provisional seasonally adjusted estimate revealed that 95,220 transactions were completed during the month, down 1% on July and 2% lower than August 2025.
On a non-seasonally adjusted basis, there were 96,250 residential transactions in August, representing an 11% monthly fall and a 9% decline compared to the same month last year.
Affordability pressures continue to curb activity
Mark Harris, chief executive of mortgage broker SPF Private Clients, said affordability challenges and wider market uncertainty appear to be holding back activity.
He added: “With transaction numbers slipping in August, affordability and wider concerns about the housing market and what the Budget might have in store appear to be dampening activity.”
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Andrew Lloyd, managing director at property data firm Search Acumen, said the figures could be viewed as either a sign of weakness or resilience.
“August has historically been a buoyant month for deal completions. But while this is a decline, against an uncertain economic backdrop, with a question mark over interest rates and a pending Budget, another interpretation is a show of continued resilience,” he said.
Jason Tebb, president of OnTheMarket, said seasonal factors and economic uncertainty had subdued market activity.
He continued: “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.”
Market expected to remain steady in coming months
Looking ahead, industry figures suggested transaction levels may remain subdued in the near term.
Nick Leeming, chair of Jackson-Stops, said: “August’s figures suggest the market is holding its course after a quieter summer.
“Mortgage approvals remained subdued in yesterday’s Bank of England report, suggesting transaction volumes may stay at around this level over the coming months.”
Melanie Spencer, growth director at Target Group, said uncertainty around interest rates and the Autumn Budget continues to cloud buyer decision-making.
She continued: “The big question is what happens next. Mortgage pricing remains highly volatile and with inflation still above target, there looks to be little relief on the horizon.
“Add in speculation around the Budget, particularly on property taxes, stamp duty and a new equity loan scheme, and buyers are caught between rushing to complete or lock in a deal, or sitting on their hands until they know what they’re dealing with.”
Prime Minister Andy Burnham has already ruled out stamp duty changes in the Autumn Budget.
