HMRC figures show there were 93,630 residential transactions in August, which is slightly down from July but 2% higher than August 2024. The property industry, however, has warned that the data is masking a growing buyer confidence issue ahead of Rachel Reeves’ Budget on 26th November.

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.”

Jeremy Leaf (pictured), north London estate agent and a former RICS residential chairman, however, says:

“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.”

 

Both sides feel they are better off waiting

Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says both buyers and sellers have become nervous about the late November Budget date.

“It’s interesting that both sides feel they are better off waiting. Much depends on where you are in the country in terms of how much your local market is affected.”

Reynolds adds that while transaction levels in her part of the country remain steady, agents in other parts of London are seeing a noticeable slowdown.

Top end already feeling impact

 

Richard Donnell, Executive Director at Zoopla, says the upper end is already feeling the impact.

“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.”

Jonathan Handford, Managing Director at Fine & Country, says tax reform speculation is adding uncertainty. “Some buyers may be hesitating to lock in deals until they see how policy evolves on Stamp Duty, Capital Gains or other property levies.”

Taxes on horizon

Tomer Aboody, director of specialist lender MT Finance, says buyers are holding back.

“With the Budget coming up and more taxes on the horizon, buyers are waiting before they make their move.”

And Nick Leeming, Chairman of Jackson-Stops, says that proposals under consideration include replacing Stamp Duty with a national property tax on homes over £500,000 and warns: “While this could improve mobility for buyers, it risks discouraging downsizing among older homeowners.”