UK residential property transactions decreased in August, with higher borrowing costs and economic uncertainty cited as factors weighing on the housing market. HMRC reported an estimated 95,220 seasonally adjusted residential transactions, a 1% reduction from July and 2% lower than August 2025.
Unadjusted figures showed a more significant decline, with approximately 96,250 transactions completing in August. This represents an 11% drop month-on-month and a 9% decrease year-on-year, meaning almost 9,000 fewer sales compared to August last year.
Despite the August dip, the financial year to date shows a stronger picture. Between April and August, unadjusted residential transactions reached 486,950, up from 442,790 in the same period of 2025/26. Seasonally adjusted transactions also rose to 488,540 over the five-month period, compared to 438,800 a year earlier.
HMRC notes that transaction data is a lagging indicator, as completions typically occur two to four months after an offer. Mortgage approval data for August also indicates potential future pressure, with around 54,900 house-purchase mortgage approvals, down from 56,000 in July.