Property deal numbers slip again ahead of Budget

Property deals fell again as the market still suffers from sluggish conditions ahead of the Budget in a few weeks’ time.

The latest seasonally adjusted transaction figures from HMRC reveal a 1% monthly drop in August from 96,650 to 95,220.

The estimated numbers are also 2% lower than in August last year. Non-seasonally adjusted deals were 11% down in August from July.

Last month, it was revealed by HMRC that the number of residential transactions in July was 96,710 – 1% down on than June, and 2% lower than at the same time in 2025.

It comes as a blow after property transaction levels had looked like they had recovered in June, following two successive months of decline.

New Chancellor John Healey is due to deliver his first Budget on 28th October with much anticipation about any announcements affecting the property market he will make.

Industry reaction

Nicky Stevenson, MD at Fine & Country, says: “While the headline transaction figures point to a quieter market, there is another side to the story. Autumn is traditionally a period when buyers and sellers re-engage after the summer, and there are early signs of renewed search activity.

“For buyers, affordability remains central. Inflation reached 3.1% in August, while the Bank of England has kept the Bank Rate at 3.75%, with the Bank highlighting the impact of higher energy prices on the inflation outlook.”

Iain McKenzie, CEO at The Guild of Property Professionals, says: “August’s transaction figures underline that the housing market is entering the autumn with a degree of caution.

“The seasonally adjusted estimate of 95,220 transactions was 2% below August last year and 1% lower than July, suggesting that the traditional autumn pick-up in activity is being tempered by affordability pressures.

“There are several moving parts behind this. Mortgage approvals have been running below their recent average, while the Bank of England has held the Bank Rate at 3.75% as inflation has moved back up to 3.1%.

“With financial conditions still relatively tight, buyers are understandably sensitive to the cost of borrowing and the amount they can afford to spend.

“As we move further into autumn, there are signs of renewed buyer engagement, but this is likely to be a more measured market than in previous years.”

Andrew Lloyd, MD at Search Acumen, says: “Those who have been lamenting the absence of a spring bounce will continue to see today’s unremarkable transaction figures as evidence of a lacklustre housing market.

“Today’s August transaction figures, down 2% annually, show an unseasonal low, as August has historically been a buoyant month for deal completions. But while this is a decline, against an uncertain economic backdrop with a question mark over interest rates and a pending Budget, another interpretation is show of continued resilience.

“Data continues to suggest home buyers are pushing forward in their droves, accepting perhaps that economic uncertainty may be our new normal.”

Nathan Emerson, Chief Executive of Propertymark, says: “Looking at the year to date, it is understandable to see a decline in the number of housing transactions, both year on year and month on month.

“Many prospective buyers and sellers have been carefully assessing the wider economic outlook and, against a backdrop of continued financial pressures, have understandably adopted a more cautious approach to making significant property decisions.

“While there remains clear underlying demand for housing, affordability and confidence continue to play an important role in determining whether people feel ready to move forward with a transaction.”