Transaction volumes in the housing market are either “lacklustre” or demonstrate continued resilience according to commentators as the number of property transactions in August stayed largely static compared with July 2026.
The latest housing market statistics from HMRC show seasonally adjusted residential transactions in August 2026 are 1% lower than July 2026, decreasing from 96,650 to 95,220. Seasonally adjusted transaction figures are 2% lower than in August 2025.
For Andrew Lloyd, Managing Director at property data firm Search Acumen the figures are “unseasonably low” with August historically being a buoyant month for deal completions. Against an “uncertain economic backdrop” with continued questions over interest rates and a pending budget, Lloyd adds the figures could be interpreted either as evidence of a lacklustre housing market, or show continued resilience.
On the one hand, “muted” market activity is to be expected said Jason Tebb, President of OnTheMarket with buyers distracted by holidays, uncertainty created by the Middle East conflict, energy prices, inflation and mortgage pricing. It is also worth remembering mortgage approvals are running below their recent averages added Iain McKenzie CEO of The Guild of Property Professionals; and higher mortgage rates are adding to the cost of buying a home said Richard Donnell, Executive Director at Zoopla: “The sales reported in this data were first agreed 5-6 months ago, with the very latest data showing that sales agreed are 9% lower as mortgage rates reach over 5% having started the year at 4%. There remains demand for housing but sellers looking to find a buyer need to set their price carefully and seek the advice of local agents.”
For Maria Harris, Chair of the Open Property Data Association (OPDA), the figures are a “reminder that the housing market needs more than measures to address social housing shortfalls and stimulating demand where deposit is a barrier. We also need to address the structural inefficiencies that make moving or renting a home slower, more complicated and more uncertain than it needs to be.” She goes on to say affordability and circumstance will dictate demand, but the process puts too many people off moving, “delaying the decision due to the stress, cost, and time involved.”
“That is why the Government’s plans to modernise the home-buying process matter. Better standards, trusted data sharing and greater interoperability creates a more connected property market, giving everyone involved access to the information they need at the right time to make the right decisions. Digitising the process won’t solve the affordability challenges, but it can make the process more efficient, more transparent and less stressful, opening up supply and giving confidence to those who do decide to move.”
It’s a sentiment echoed by Ian Robinson, interim CEO at LMS, who adds the market is “subdued” and greater efficiency is needed. “The challenge isn’t a lack of information” he said, “it is making sure the right information, in a form that can be trusted and acted on, can be shared securely across the property ecosystem. That would help lenders, conveyancers, estate agents and other participants spend less time chasing and checking information and more time progressing transactions. Building infrastructure such as NPTN to help trusted data flow across the transaction is an important part of turning the Government’s Smart Data and home-buying ambitions into something that works in practice.”
On the Your First Home announcement earlier this week, which provides 2.5% deposits, backed by 20% government-backed equity loans, for prospective first-time buyers purchasing a new-build property from a developer signed up to the scheme, commentators were positive about the potential impact on future transaction volumes, and called for wider market support at the upcoming Autumn budget. Neil Knight, divisional director at Spicerhaart Part Exchange and Group Clients said: “The Government’s new Your First Home scheme is clearly a welcome boost for first-time buyers and the new-build sector. But a healthy housing market needs movement at every rung of the ladder. Alongside those taking their first step, we also need those to move up, move on or downsize. Right now, many of those movers are stuck, either through higher borrowing costs, fragile chains or the fear of not being able to sell.”
Tebb added” Government intervention to encourage transactions is welcome and we look forward to further detail on this in the budget, although indications suggest the new scheme will be restricted to new-build homes rather than apply to the wider market. Raising a deposit continues to be an issue for first-time buyers, particularly those who can’t call upon the Bank of Mum and Dad for assistance, and supporting more first-time buyers should boost activity in the wider market.”
“With the Autumn Budget now just weeks away, attention will naturally turn to what measures may be announced to support homebuyers and sellers” concluded Nathan Emerson, CEO at Propertymark. “Any measures that help first-time buyers onto the housing ladder would be particularly welcome, alongside initiatives that encourage investment and enable the sector to respond effectively to anticipated future demand.”
