Residential property transactions in the UK fell by 2% in August, dropping to 93,630 from July’s 95,240, according to government data. This slight month-on-month decline, seasonally adjusted, comes after three consecutive months of increases, HMRC reports.
Despite the dip, August 2025 saw a 2% rise in transactions compared to the same month last year, marking the highest August total since 2022, when 102,610 sales were recorded.
Meanwhile, non-residential property transactions hit 9,910 in August 2025—down 2% from August 2024 and 3% lower than July 2025.
Industry reactions:
Jeremy Leaf, north London estate agent and a former RICS residential chairman: “A first glance at these figures, which helpfully cover cash and mortgaged sales, might make you think the market is demonstrating better-than-expected resilience. But 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.”
Nick Leeming, chairman of Jackson-Stops: “August’s figures point to cautious momentum, with the number of transactions on annual basis now having risen for two years in a row. 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.
“We may still be a distance away from the Autumn Statement, yet speculation around housing policy reform is already weighing on the market. Proposals under consideration include replacing Stamp Duty with a national property tax on homes over £500,000, potentially shifting the burden to sellers. While this could improve mobility for buyers, it risks discouraging downsizing among older homeowners, a part of the market our research revealed is highly sensitive to stamp duty changes – our latest insights highlighted stamp duty relief for downsizers could bring over half a million homes to the market within just 12 months, delivering much needed market fluidity and wider economic activity.
“For now, the market can take comfort in the continued completions and sustained house price growth. Though, further momentum will depend on a stable economic backdrop and thoughtful policy decisions that support movement, rather than undermine it.”
Iain McKenzine, CEO of The Guild of Property Professionals: “The latest HMRC figures show that UK residential transactions in August 2025 were 93,630 on a seasonally adjusted basis, 2% higher than the same month last year, though 2% down on July. This follows three consecutive months of growth after the dip seen in April, suggesting the market continues to hold steady even as momentum eases slightly.
“Overall, the housing market continues to show resilience, with activity levels running ahead of last year despite ongoing uncertainty. While speculation over potential tax changes in the forthcoming Autumn Budget is prompting some buyers to delay decisions, demand remains underpinned by improved affordability, with the Bank of England base rate at 4%, its lowest in over two years after five cuts in the past 12 months.
“Looking ahead, policy developments and persistent inflationary pressures could temper seasonal patterns, but greater supply and more competitive mortgage rates are supporting a steady outlook. Sellers who price realistically are best placed to secure buyers, with competitively priced homes still attracting attention in the market.
“With transaction volumes still trending above last year’s levels and affordability gradually improving, activity looks set to remain steady into year-end, even if some caution persists while buyers and sellers await clarity on tax policy.”
Jason Tebb, president of OnTheMarket: “A slight dip in seasonally-adjusted transaction numbers should be considered in context, with three previous months of consecutive increases suggesting the market is moving in the right direction overall.
“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.
“Pre-Budget speculation over tax changes is creating some uncertainty, although needs-based buyers and sellers are getting on with their transactions while some put decisions on hold as they await more clarity later in the year. Any government efforts to help make the home-buying journey more accessible and affordable are welcome but any changes which are introduced in the Budget must work for the whole market.”
Richard Donnell, executive director at Zoopla: “Housing transactions slowed over August but they are 10% higher than in 2023 as the recovery in transactions starts to plateau due to higher borrowing costs and broader economic uncertainty. Looking ahead, we expect transaction volumes to remain in line with current levels. Demand for homes at the upper end of the market is already being hit ahead of the Budget as speculation grows over possible changes to the taxation of high value homes.”
Read the orginal article: https://propertyindustryeye.com/the-industry-reacts-to-the-latest-hmrc-property-transactions/
