UK residential property transactions fell in August as higher borrowing costs and economic uncertainty continued to weigh on the housing market.
HMRC recorded an estimated 95,220 seasonally adjusted residential transactions during the month.
That was 1% lower than July and 2% below August 2025, according to the provisional figures.
The unadjusted numbers showed a steeper decline. An estimated 96,250 transactions completed in August, down 11% month-on-month and 9% year-on-year.
The figures cover UK property transactions worth £40,000 or more. HMRC records transactions by completion date.
Nearly 9,000 fewer sales than last August
The annual decline in unadjusted transactions means almost 9,000 fewer residential sales completed than in August last year.
There were 105,240 transactions in August 2025, compared with 96,250 this August.
However, the financial year to date presents a stronger picture.
Between April and August, unadjusted residential transactions reached 486,950. That compares with 442,790 over the same period of 2025/26.
Seasonally adjusted transactions totalled 488,540 during the five-month period, against 438,800 a year earlier.
HMRC cautions that transaction data are a lagging indicator. Completions typically take place two to four months after an offer is made, so the figures do not necessarily reflect current market conditions.
Agents report more activity – but deals taking longer
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said transactions provide a broader indication of market health than house prices because they include both mortgaged and cash purchases.
He said: “Concerns about the pace of increase in mortgage rates and inflation haven’t gone away and now the budget is starting to loom larger.
“However, there is no question we have noticed in our offices more enthusiasm to move since the end of the summer holiday period but the amount of choice in most price ranges means transactions are taking painfully long to complete.”
Richard Donnell, executive director at Zoopla, pointed to more recent sales data as evidence of further weakening.
He said: “Housing sales are slowing in the face of higher mortgage rates adding to the cost of buying a home.
“The sales reported in this data were first agreed 5-6 months ago, with the very latest data showing that sales agreed are 9% lower as mortgage rates reach over 5% having started the year at 4%.
“There remains demand for housing but sellers looking to find a buy need to set their price carefully and seek the advice of local agents.”
Mortgage pipeline points to further pressure
The latest mortgage data also suggest the market faces headwinds. Bank of England data released this week put August house-purchase mortgage approvals at around 54,900, down from around 56,000 in July.
Tom Bill, head of UK residential research at Knight Frank, said: “While the number of transactions was flat versus the five-year average in August, an equivalent decline of 14% in mortgage approvals indicates there is still pain in the post for the UK housing market.
“Given that mortgage offers can last for six months, activity will be squeezed in the final three months of the year as the impact of higher mortgage rates from the Middle East conflict takes its toll.”
Nick Leeming, chairman of Jackson-Stops, struck a more resilient note.
He said: “August’s figures suggest the market is holding its course after a quieter summer. People moving for work, family or a change in circumstances continue to underpin transactions.
“Mortgage approvals remained subdued in yesterday’s Bank of England report, suggesting transaction volumes may stay at around this level over the coming months.”
Commercial transactions also fall
Non-residential transactions also declined in August.
HMRC recorded an estimated 10,220 seasonally adjusted transactions, down 1% from July and marginally lower than a year earlier.
On an unadjusted basis, 9,080 transactions completed during the month. That represented a 17% monthly fall and a 5% annual decline.
HMRC’s September transaction figures are scheduled for publication on 30 October.
