UK residential property transactions fell in August as higher mortgage costs and affordability pressures continued to weigh on the market.
HMRC estimates there were 95,220 seasonally adjusted transactions, down 1% from July and 2% below August 2025.
On a non-seasonally adjusted basis, transactions fell 11% month-on-month and 9% annually to 96,250.
The figures follow Bank of England data showing mortgage approvals for house purchase fell to 54,900 in August, while Zoopla says sales agreed are running 9% below last year.
AUTUMN MARKET SLOWS
HMRC cautions that its figures record completions and generally reflect offers made several months earlier rather than current conditions.
Richard Donnell, Executive Director at Zoopla, says: “There remains demand for housing but sellers looking to find a buyer need to set their price carefully and seek the advice of local agents.”
Iain McKenzie, Chief Executive Officer of The Guild of Property Professionals, says the market is entering autumn cautiously as borrowing costs constrain affordability.
“Buyers have plenty of choice, and sellers need to recognise that competition is not simply between buyers, it is also between properties,” he says.
Nicky Stevenson, Managing Director of Fine & Country, agrees that accurate pricing is becoming critical.
“This is not a market where simply testing a high asking price is likely to be enough,” she says. “Pricing correctly from the outset can make the difference between attracting serious buyers early and having a property sit on the market.”
Jeremy Leaf, north London estate agent and former RICS Residential Chairman, reports greater enthusiasm since the summer holidays but says the choice available means transactions are taking “painfully long” to complete.
MORE PAIN AHEAD
Tom Bill, Head of UK Residential Research at Knight Frank, says transactions were level with their five-year average in August, but mortgage approvals were 14% lower.
He warns activity could be squeezed during the final quarter as higher mortgage rates filter through, with the outlook also dependent on inflation, geopolitical developments and measures announced in next month’s Budget.
Nathan Emerson, Chief Executive Officer of Propertymark, says affordability and confidence will determine whether prospective movers proceed, with support for first-time buyers particularly welcome at the Budget.
Maria Harris, Chair of the Open Property Data Association, says digitising the home-moving process would not resolve affordability pressures but could make transactions faster, clearer and less stressful.
