Figures from HMRC revealed that on a seasonally adjusted basis, this was 7% higher than the residential property transactions completed during the same month last year. 

This was the second month in a row that seasonally adjusted residential transactions showed a month-on-month fall. 

On a non-seasonally adjusted basis, residential property transactions were 7% higher than the previous month at 96,800. This was also 13% up on the year before. 

 

Affordability challenges still present despite the busy market

Andrew Lloyd, managing director at Search Acumen, said the annual rise in residential transactions aligns with the firm’s “measured expectations of a gradual recovery”.

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He added: “As we move into a traditionally slower autumn period, it’s encouraging to see this resilience starting to build. The recent fall in interest rates has undoubtedly played a role, potentially enticing more buyers off the sidelines. However, we must remain pragmatic – affordability challenges persist, and the full impact of rate cuts will take time to filter through to mortgage products and buyer confidence.” 

Nick Leeming, chair of Jackson-Stops, said the figures suggested the market would get busier towards the end of the year. 

Leeming said: “While transaction data can take longer to show a shift in trends, even today’s annual uptick suggests greater confidence from buyers and sellers in direct response to a clearer political outlook and improving economic situation.

“The market continues to be underpinned by the difficult polarity of both affordability and availability issues – key factors that Labour has already outlined its intention to address by building 1.5 million homes during this Parliament. Yet, until these homes move from concept into reality, it’s unlikely that the market dynamic can change drastically. For now, the market will continue to be driven by lifestyle changes and shifting buyer priorities, although we have a budget ahead, which may change sentiment if there are any unexpected changes in taxation.” 

Tony Hall, head of business development at Saffron for Intermediaries, agreed, adding: “While today’s figures are not what we expected, the housing market still looks poised for a busy autumn. With the Bank of England’s first interest rate cut since 2020 last month, we’re seeing a wave of new sub-4% deals energising the mortgage market.” 

However, Hall said: “That said, there will still be hurdles for prospective buyers as today’s market is a different ballgame compared to the years of ultra-low rates we had before. That’s why borrowers need to explore the growing range of mortgage options out there.”