Recent data released today by HM Revenue and Customs (HMRC) reveals a 2% decrease in seasonally adjusted residential property transactions for August 2025, following three consecutive months of growth. Industry experts have delved deeper into these figures, providing insights into the underlying trends and potential implications for the housing market.
Industry experts have delved deeper and provided insight.
Kevin Roberts, Managing Director of L&G’s Mortgage Services business, said:
“Today’s figures show a dip in transactions, with market sentiment best described as cautiously stable with many buyers adopting a ‘wait and see’ approach. This is driven by the reduced likelihood of further interest rate cuts, uncertainty over the autumn budget and ongoing cost of living pressures.
“With plenty of opportunities for buyers in varying regional markets, and strong mortgage activity among borrowers nearing the end of fixed-rate deals, seeking advice from an independent mortgage adviser is essential to navigating this dynamic market with confidence.”
Melanie Spencer, growth director at Target Group, said: “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.”
Simon Webb, managing director of capital markets and finance at LiveMore, commented:
“An increase in non-seasonally adjusted residential transactions is encouraging and suggests that buyer demand is translating into activity. With the base rate cut in August, we expect this momentum to build, provided the market is given a period of stability in monetary policy. What happens in the budget and with interest rates in November will be key in sustaining confidence.
“For later life lending, the opportunity is clear. Borrowers aged 50 to 90+ still face limited awareness of their options, but demand is there. At LiveMore we continue to broaden access to a full spectrum of later life products, helping to keep housing transactions moving and enabling older borrowers to participate fully in the market.”
Richard Pike, chief sales and marketing officer at Phoebus Software, commented:
“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.”
Nathan Emerson, CEO at Propertymark, comments:
“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.”
Mark Tosetti, CEO of CAL (part of Movera), commented:
“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.
Matt Harrison, customer success director at Finova Broker, commented:
“This non-seasonally adjusted data shows the residential property market persevering despite uncertainty and the looming Autumn Budget. Unfortunately, Reeves’ speech yesterday at the Labour Party Conference didn’t provide many real clues about what the budget is set to include, and her warning of ‘hard choices to come’ won’t have done much to instil confidence, so we’ll probably still see transaction data take a hit in the coming months. Those waiting for some good news from Reeves or a further interest rate cut may find themselves waiting a while.
“As always, brokers are in prime position to provide advice to their clients about when to make a move and the best mortgage rates available. Ensuring you have answers for your clients, whatever direction Reeves takes with the budget will be key. Data-led tools can help give brokers the edge when outcomes aren’t clear, ensuring they stay on top of changing lender rates and remortgage opportunities.”
