Transactions reached 87,010 making August the third consecutive month to show a month-on-month increase in seasonally adjusted sales, according to HMRC.
This follows a month-on-month increase of six per cent and 0.3 per cent in June and July respectively.
Setting August 2020 aside when transactions were 85,050 in the year the pandemic began, last month’s transaction levels were the lowest since the beginning of the series in 2014.
Nick Leeming, chairman of Jackson-Stops, said: “At a topline view, residential transactions have continued to rise modestly over the summer months, showing signs of a market that has been quietly boosted by a period of relative stability and resilience for sellers.
“Whilst these figures are a snapshot of deals agreed likely six months ago or more, the lending market today looks more settled. The wider market hopes that the Bank of England’s recent decision to hold the base rate at 5.25 per cent represents the peak and will therefore offer a boost to the lending market.
“Mortgage rates and inflationary pressures naturally effect consumers appetite for debt in the shorter term, but the property market is not solely driven by financial decisions. Lifestyle and needs-based changes are a continually strong motivator of property purchases at all levels of the market. Often, the rules of supply and demand are taking precedent over macroeconomics.”
Tony Hall, head of business development, Saffron for Intermediaries, added: “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.
“However, we have seen a rise in gazundering – a process where a buyer lowers the offer made on a property just before the exchange of contracts. This is a rising concern in the industry which has resulted in some purchases falling through. This can happen when a buyer finds issues with the property during the surveying process. Reforms to the house buying process in England to introduce a home report, similar to the Scottish system, could be a suitable solution to this problem.”
