Property sales edged up by 1% in August compared with a month earlier, but fell by 16% year-on-year.

The latest official data shows that transactions reached 87,010 making August the third month in a row to show a month-on-month rise in seasonally adjusted sales.

This follows a month-on-month increase of 6% and 0.3% in June and July respectively, according to HMRC.

Excluding August 2020 when transactions were 85,050 in the year the pandemic started, transaction levels in August this year were the lowest since record began in 2014.

Iain McKenzie, CEO of The Guild of Property Professionals, said: “Another uplift in property sales is a positive sign that the industry is recovering after a slow first half to the year.

“Estate agents have been enticing more sellers onto the market to give more choice to buyers when it comes to finding the right property.

“The annual picture still shows a significant drop off in sales at 16%, but nothing different to what we were forecasting at the start of the year. If anything, our predictions of an overall fall of 20% for 2023 may even be revised thanks to the consecutive months of increases we have seen.

“The lower than average levels of mortgage approvals are partly responsible for the decline, but as inflation creeps down, and the Bank of England continues to hold off interest rate hikes, we may see that trend subside.

“The affordability factor will remain a stumbling block for buyers during the rest of the year, however.

“Sellers can be reassured that there is still a healthy demand for good quality housing, especially among first-time buyers looking to escape the expensive rental market. There may be more flexibility required in the asking price than there was last year but your local estate agent will be able to advise you on what to expect in your area.”

Nick Leeming, chairman of Jackson-Stops, concurred: “At a topline view, residential transactions have continued to rise modestly over the summer months, showing signs of a market that has been quietly boosted by a period of relative stability and resilience for sellers.

“Whilst these figures are a snapshot of deals agreed likely six months ago or more, the lending market today looks more settled. The wider market hopes that the Bank of England’s recent decision to hold the base rate at 5.25 per cent represents the peak and will therefore offer a boost to the lending market.

“Mortgage rates and inflationary pressures naturally effect consumers appetite for debt in the shorter term, but the property market is not solely driven by financial decisions. Lifestyle and needs-based changes are a continually strong motivator of property purchases at all levels of the market. Often, the rules of supply and demand are taking precedent over macroeconomics.”