HMRC: UK property sales are busier than last summer

The number of UK property sales registered with HMRC rose in July but remains below pre-pandemic levels, official data shows.

HMRC property transactions data shows 90,630 residential sales were registered with the taxman during July on a seasonally-adjusted basis, up 7% annually.

The figure is up 13% annually on a non-seasonally adjusted basis to 96,800.

While an improvement on last year, the number of sales registered with HMRC pre-pandemic in July has historically been at around 100,000.

London estate agency Chestertons suggests that the expected interest rate cut in August led to house hunters stalling their activity in July, resulting in 14% fewer buyers entering the market than in June. 

Matt Thompson, head of sales at Chestertons, said:

“July marks the beginning of the summer season when many aspiring homeowners postpone their search until after their holidays.

“This year, this quieter period coincided with the scheduled announcement of the Bank of England which contributed to a dip in enquiries in July.

“Buyers who were in the last stages of their property purchase, however, remained eager to finalise their search.

“As a result, the London property market remained buoyant in July with 7% more properties changing hands, according to Chestertons’ data.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: 

“Although reflecting what was happening a few months ago, these transaction figures demonstrate that buyers and sellers have shrugged off political and economic worries and moved on. 

“We don’t expect much change going forward, although concerns about the Budget will undoubtedly compromise momentum. 

“Buyers and sellers at the higher end of the market particularly expect to bear the brunt of tax increases so that is where we expect the change to be most noticeable.” 

Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, said things could get better for the property market if interest rates are cut again in November.

Reynolds added:

“However, as we have learnt too well this year, what the markets forecast and what happens are often two very different things.

“November is very late in the day to launch a property as most people want to move by Christmas, so sellers would be better to come on the market in September or October and price as accurately as possible to ensure a successful sale and move this year.”

Kindly shared by Estate Agent Today