HMRC reports steady increase in sales despite economic pressures
Residential property transactions in the UK increased in July, with both seasonally adjusted and non-seasonally adjusted estimates showing growth compared to the previous year and month, the latest figures from HM Revenue & Customs (HMRC) have shown.
According to HMRC, the provisional seasonally adjusted number of residential transactions reached 95,580 in July, representing a 4% rise on July 2024 and a 1% increase from June 2025. The non-seasonally adjusted figure stood at 101,070, also 4% higher than the same month last year and 5% above the previous month.
For non-residential properties, the seasonally adjusted total was 10,260, up 1% on July 2024 but 1% lower than June 2025. The non-seasonally adjusted estimate for non-residential transactions was 10,620, showing a marginal increase year-on-year and a 4% monthly rise.
“Today’s figures show an increase in transactions, underlining the resilience of buyers despite recent inflationary pressures,” said Tony Hall (pictured top left), head of business development at Saffron for Intermediaries. “Lenders have responded by reducing rates in line with market conditions, while smaller providers are also launching new products to meet ongoing demand in the housing market.
“Average mortgage rates have now dipped below 5% for the first time since the 2022 mini-budget, marking an important milestone for affordability. At the same time, the Chancellor is reviewing property tax reforms ahead of the Autumn Budget. The devil will be in the detail – if the burden shifts to sellers, we could see asking prices rise, reducing the incentive for downsizers to move and potentially limiting supply for first-time buyers. Until the proposals are confirmed, brokers will play a vital role in guiding borrowers through what remains a competitive and evolving market.”
Nathan Emerson (pictured top centre), chief executive of industry body Propertymark, called the increase in transactions “extremely positive” - a “clear-cut indicator of overall affordability and consumer confidence.”
“We have witnessed the UK government and the devolved administrations make comprehensive promises regarding housebuilding targets, which should boost the economy in the long run and provide greater choice to those who aspire to buy.” Emerson said. “We also have the Planning and Infrastructure Bill, which will apply to England, working its way through Westminster as the autumn approaches, again aimed at increasing housing supply.”
“Alongside Zoopla’s House Price Index that put sales agreed up 5% on this time last year, these figures paint a positive picture of continued recovery from the slump that followed the end of the temporary nil-rate thresholds in April,” said Nick Hale (pictured top right), chief executive of conveyancing platform Movera.
“Given the recent interest rate cut by the BoE, this trend should continue, as buyers will be keen to secure the best mortgages while rates are down. A further cut or hold by the BoE in September would help to sustain buyer confidence and transaction momentum.”
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