HMRC’s latest property transactions data revealed a mixed picture for August 2025, with residential activity slipping slightly month on month, while non-residential volumes fell more sharply.
The provisional seasonally adjusted estimate for UK residential transactions stood at 93,630 in August 2025.
This represented a 2% increase compared with August 2024, but a 2% decline from July 2025.
On a non-seasonally adjusted basis, there were 103,610 residential transactions, down 1% year on year but 2% higher than the previous month.
In the non-residential sector, the provisional seasonally adjusted estimate was 9,910 transactions in August 2025, a fall of 2% compared with the same month last year and 3% lower than in July 2025.
The non-seasonally adjusted figure was 9,190, down 5% annually and 13% on the month.
Reaction:
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.”
Ryan McGrath, director of second charge mortgages at Pepper Money:
“Property transactions have shown modest but steady growth, remaining positive on an annual basis. However, there’s a noticeable shift in sentiment among homeowners, many of whom, in more predictable market conditions, might have already made decisions to move. Today, economic uncertainty and the financial impact of expiring fixed-rate deals, particularly those secured before 2022, are prompting a reassessment of priorities.
“Rather than taking on the cost and complexity of moving, a growing number of homeowners are choosing to reinvest in their current properties, showing a growing desire to maintain financial stability while still unlocking the value tied up in their homes.
“In this environment, second charge mortgages offer a smart and flexible solution particularly with products that offer no early repayment charges; they allow asset-rich but cash-poor borrowers to access equity without disturbing their existing mortgage arrangements and to spread repayments over a longer period to keep monthly costs down.
“Whether it’s to finance home improvements, support family members, or manage changing financial circumstances, second charge mortgages can be a valuable tool in navigating today’s economic environment, without homeowners having to overhaul their financial position or home ownership status.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“The summer market proved to be surprisingly resilient given continued caution from buyers. In our offices, well-priced property continued to sell and the gap between serious buyers and committed sellers has narrowed.
“However, since then, buyers and sellers alike have become nervous about the pending Budget. The late November date is causing a slowdown in the market while people wait for clarity.
“It’s interesting that both sides feel they are better off waiting. There is still a market, the quality of applicants is good, and sales are being agreed.
“Much depends on where you are in the country in terms of how much your local market is affected. In our part of the country, transaction levels do not seem significantly suppressed but from speaking to agents in other parts of London they are seeing a noticeable slowdown as people wait.”
Richard Pike, chief sales and marketing officer at Phoebus Software:
“This slight rise in non-seasonally adjusted residential transactions is hopefully a sign that confidence is starting to return to the market. The August rate cut from the Bank of England is likely beginning to filter through and we should see further momentum in completions over the coming months. The key question is what we’ll see from the budget and how the MPC moves in November – trying to balance inflationary pressure with rising unemployment.
“There’s also a structural supply issue at play. The government looks set to fall well short of its 1.5 million homes target by 2029, which could keep prices stubbornly high and limit options for those looking to move.
“This uptick should be seen as encouragement, but it also underlines the need for lenders, policymakers and tech providers to work together to reduce friction in the homebuying process and support borrowers through a challenging economic landscape.”
Mark Tosetti, CEO of CAL (part of Movera):
“A further uplift in non-seasonally adjusted residential property sales is positive, but activity is likely plateau – or worse – from here until we get clarity on what the Autumn Budget has in store. The Zoopla House Price Index highlighted yesterday that demand for homes over £1m is down 11% and properties over £500,000 is down 8%, likely due to speculation about property taxes. While the wider market is steady, new listings for more expensive properties are also down. The closer we get to Reeves’ announcement, the more hesitancy we will see from buyers and sellers alike.
“Brokers and conveyancers must look to make swift progress now for serious buyers unperturbed by budget speculation, as many will still be looking to take advantage of recent mortgage rate cuts. But it will also be important to brace for momentum to pick up quickly once the budget dust settles.”
Nathan Emerson, CEO at Propertymark:
“People need to feel a greater degree of confidence as they approach their next house move, and continued economic uncertainty and high interest rates have no doubt deterred some consumers from doing so.
“With interest rates slowly edging back downward, which has helped improve mortgage products on offer, and with house prices showing initial indications that they are starting to soften as we head in autumn, we now look to the Budget in November and next Bank of England decision on the base rate, as both of these factors will play a big part in determining the level of confidence people have moving forward.”
Melanie Spencer, growth director at Target Group:
“The non-seasonally adjusted figures show another uplift in property transactions, which is a positive sign for the market – particularly given the wider economic picture at play. It speaks of the resilience we are seeing among homebuyers and movers, as well as an increasing willingness among sellers to not stand on ceremony and tweak prices to close the deal. Underpinning this is the hard work of lenders to improve access and affordability with enhanced mortgage rules at their disposal.
“What the future holds for property transactions largely depends on what is announced in the Budget, as this will undoubtedly factor into the plans and the urgency of many prospective buyers. Any potential lag or calming could shift quite rapidly – particularly if we do see headline-grabbing changes to stamp duty policy.
“Such a change will turn up the heat for lenders and place even greater importance on having efficient, scalable and tech-enabled processes in place. For those without, digital transformation and outsourced services will be absolutely key.”
Andrew Lloyd, manding director at Search Acumen:
“August’s property transaction data reflects the usual seasonal snooze, but the 2% drop compared to last year points to a growing hesitation greater than holiday absences. The commercial property market is in summer slowdown, signalling stalemate as confidence remains on pause whilst markets wait the Chancellors big moment come November.
“For lawyers, conveyancers, and deal professionals, the challenge remains keeping transactions moving in a market clouded by hesitation and external hurdles. Administrative bottlenecks and paperwork delays continue to stretch timelines, with fall-throughs on the rise – especially in high-demand areas.
“The months ahead will be defined by a delicate balance: process efficiency, investor confidence, and transactional capacity. How well these pieces come together will dictate whether the market stays in stalemate or sparks back into life.”
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.”
Tomer Aboody, director of specialist lender MT Finance:
“With the Budget coming up and more taxes on the horizon, buyers are waiting before they make their move. Fearing wealth tax and an annual property tax, many will wait to see if these come about and whether it’s financially viable to move.”
