The number of UK residential property transactions totalled 95,580 in July, 4% higher than July 2024 and 1% higher than June, the latest figures from HMRC show.
On a non-seasonally basis, sales were 4% higher than July 2024 and 5% higher than June.
Nick Leeming, chairman of Jackson-Stops, commented: “Property transactions in July remained steady on an annual basis, reflecting a consistent but seasonal level of market activity. Buyers are increasingly having to focus on the realities of their local markets but will be supported across the market by improved affordability following the recent base rate cut to 4%. This has helped unlock movement among homeowners nearing the end of fixed rate deals, many of whom had kept plans on hold due to cost concerns. At the same time, a healthy supply of stock and demand for well-priced, high-quality homes is driving transactions in popular areas.
“Speculation around potential stamp duty reform and wider property tax changes on high-value homes is also shaping behaviour ahead of the Autumn Statement. While proposals such as a Mansion Tax remain hypothetical, they risk unintended consequences if not carefully designed. Many older homeowners are asset-rich but cash-poor and further tax barriers could discourage downsizing and reduce market mobility; the very opposite of what the market needs.
“There is broad consensus across the property industry that a step-change is needed. However, this should aim for a balanced approach to reduce friction and support movement within the market.
“In the short-term, the prospect of reform may prompt a flurry of activity, as buyers and seller look to act before any change take effect and force buyers and sellers to change their plans once again.”
Tony Hall, head of business development at Saffron for Intermediaries, said: “Today’s figures show an increase in transactions, underlining the resilience of buyers despite recent inflationary pressures. Lenders have responded by reducing rates in line with market conditions, while smaller providers are also launching new products to meet ongoing demand in the housing market.”
“Average mortgage rates have now dipped below 5% for the first time since the 2022 mini-budget, marking an important milestone for affordability. At the same time, the Chancellor is reviewing property tax reforms ahead of the Autumn Budget. The devil will be in the detail – if the burden shifts to sellers, we could see asking prices rise, reducing the incentive for downsizers to move and potentially limiting supply for first-time buyers. Until the proposals are confirmed, brokers will play a vital role in guiding borrowers through what remains a competitive and evolving market.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Transaction numbers have risen again as cheaper interest rates encourage activity and enable borrowers to plan ahead with more confidence.
“Despite another rate cut earlier this month from the Bank of England, some lenders are repricing upwards, including NatWest, Santander and Coventry, while HSBC has reduced rates. The mixed picture is down to rising swap rates, which underpin the pricing of fixed rate mortgages, and lenders not wanting to offer the best rates during the summer months when staff are away on holiday and resources are more limited.
“While mortgage rates will always bounce around, we are not expecting any significant reductions or increases in the short term, which should give those borrowers looking to move in the autumn some confidence to commit to a purchase.”