The slight decline, measured on a seasonally adjusted basis, follows three consecutive months of rises in the volume of transactions, according to HMRC.
Year-on-year, August’s residential transactions were up 2% compared to August 2024 and represent the highest level of August transactions recorded since 2022, when 102,610 sales took place.
UK non-residential transactions in August 2025 reached 9,910, 2% lower than August 2024 and 3% lower than July 2025.
Mortgage affordability improves
Nick Leeming, chair of estate agency Jackson-Stops, said: “While a modest annual uplift, completions are moving in the right direction, buoyed by improving affordability conditions and a pragmatic commitment from buyers and sellers to move forward. The market remains sensitive to economic events and international decisions, but the easing of mortgage costs has helped to restore confidence.”
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Over the summer, swathes of lenders relaxed their affordability criteria to offer first- and next-time buyers much bigger income stretches while applying lower stress tests to household budgets.
Meanwhile, the effective interest rate – the actual interest paid – on newly drawn mortgages contracted for the sixth month in a row to 4.26% in August.
However, Jeremy Leaf, North London estate agent, thinks these latest figures could be misleading by showing “better-than-expected resilience”.
“Don’t be fooled – these transactions reflect activity from the past few months so don’t take much account of recent uncertainty prompted by speculation about Budget content.
“Since then, some buyers and sellers – particularly of more expensive flats and houses – have been pressing the pause button, although the overwhelming majority of our sales are continuing, albeit more cautiously,” he added.
The Autumn Statement, or Budget, is set for 26 November and rumours of what’s in store for the property market and individuals’ tax burdens are rife.
Among the rumoured policies, there is speculation that there could be changes to inheritance tax gifting allowances, a new tax on homeowners of higher-value properties and National Insurance applied to landlords’ rental income.
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Leeming added: “Further momentum will depend on a stable economic backdrop and thoughtful policy decisions that support movement, rather than undermine it.”
Jason Tebb, president of OnTheMarket, said: “The housing market remains remarkably resilient despite wider economic and political concerns.
“Five interest rate reductions in the past year have provided confidence and reassurance for buyers and sellers alike. Even if rates are held amid fears about persistent inflationary pressures, a stable rate environment is good news for the housing market.”
The Bank of England’s Monetary Policy Committee (MPC) voted to cut the base rate by 0.25% to 4% in August. The committee is scheduled to meet next on 6 November.
Gross mortgage lending came to £22.7bn in August, a drop from £24.5bn in July, the latest statistics show.
