Figures from HMRC showed transaction levels were also 1% higher than the previous month.
On a non-seasonally adjusted basis, residential transactions were 4% higher than last year, at 101,070, and 5% up on June.
Confidence and resilience remain in the housing market
Clare Beardmore, director of distribution and mortgage club, mortgage services at L&G, said the “encouraging uplift” in transactions suggested “growing confidence” in the market.
Beardmore said the group’s broker data also showed it was buyers of all ages who were looking to get onto the property ladder for the first time.
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Jeremy Leaf, North London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chair, said the “resilient” figures reflected what his firm was seeing on the ground, adding: “Buyers and sellers are negotiating hard, but the overwhelming majority of agreed sales are proceeding to completion.”
Melanie Spencer, growth director at Target Group, said: “In the market that is surrounded by economic or political uncertainty – at home and abroad – another positive monthly increase in transactions is hugely welcome and demonstrates both real confidence and enthusiasm among buyers across the market.
“There’s no doubt that there could still be some choppy waters ahead, with inflation far from subdued and real unknowns when it comes [to] global trade and further escalations abroad. How this will all play out will be closely watched – most notably by the central bank as they weigh up any further movement on interest rates against sticky inflation and a struggling economy. Even so, it seems there is growing optimism and buyers remain undeterred. With the support of the market, they are keen to push on with plans.”
Sellers may wait for tax change confirmations
Others said activity might slow in the future, as sellers waited for confirmation on the introduction of speculated tax changes.
Jonathan Handford, managing director at Fine & Country, said: “We may see a ‘wait-and-see’ trend emerge among sellers who are uncertain about potential property tax changes in the Autumn Budget. However, this could also spur activity, particularly in the prime market, as sellers of high-value homes become more flexible on their asking price.
“Even speculation alone can delay decision-making and dampen short-term activity.”
Karen Noye, mortgage expert at Quilter, said: “Uncertainty around potential tax reforms in the upcoming Budget, including speculation about a mansion tax and changes to stamp duty, could prompt some buyers and sellers to sit on their hands.
“If these proposals are introduced, higher-value transactions may be particularly affected, potentially slowing activity for the whole market. For now, July’s figures point to a market that is stabilising, but future momentum will depend as much on policy developments as on economic fundamentals.”
Noye added: “If interest rates come down and property tax is not tweaked, we may see activity rebound. However, transactions could grind to a halt if changes in the Budget spook prospective sellers.”
