New figures from HM Revenue and Customs (HMRC) show that the number of houses sold across the UK in August was two per cent higher than in the same month last year. This suggests that, despite ongoing economic pressures, the property market continues to show resilience on an annual basis.
In total, an estimated 93,630 transactions were completed during August 2025. This represented a modest year-on-year increase when compared with August 2024. However, sales activity was two per cent lower than July 2025, underlining that momentum has slowed after a period of steady growth.
The drop from July follows three consecutive months of rising sales, which had given hope of stronger recovery in the housing sector. Analysts note that while the annual improvement is positive, the slight monthly dip highlights how fragile buyer confidence remains.
Additional insights came from the Bank of England, which tracks mortgage approvals as a forward-looking indicator of market activity. In August, 64,680 mortgage approvals for house purchases were granted. This was down from 65,161 in July, signalling a small cooling in demand at the application stage.
Commenting on the mortgage market, Mark Harris, chief executive of mortgage broker SPF Private Clients, explained that rates remain in flux. “Some lenders have been raising their mortgage rates slightly while others have been tweaking downwards,” he said. “Borrowers, on the whole, have adjusted to this higher rate environment.” His remarks suggest that while borrowing costs are still elevated, many buyers have accepted them as the new normal.
Meanwhile, Ryan McGrath, director of second charge mortgages at Pepper Money, pointed out that property transactions are still showing steady progress overall. He emphasised that growth, though modest, remains encouraging when viewed on an annual basis.
However, McGrath also warned that market sentiment has shifted noticeably. He explained that in a more predictable economic climate, many homeowners would already have chosen to move. Instead, ongoing uncertainty and the financial strain of expiring fixed-rate deals — particularly those secured before 2022 — are forcing households to reassess their priorities.
The impact of these expiring deals has been significant. Many borrowers who had enjoyed historically low mortgage rates are now facing substantially higher repayments, which has discouraged some from taking on new commitments in the property market.
Nick Leeming, chairman of estate agency Jackson-Stops, also commented on the situation. He noted that the housing market remains highly sensitive to economic events and even international developments, reflecting the broader uncertainty shaping consumer behaviour.
Despite this, Leeming observed that the recent easing of mortgage costs has gone some way in restoring buyer confidence. This has encouraged certain purchasers back into the market, especially those who had postponed moving decisions earlier in the year.
Richard Donnell, executive director at Zoopla, offered a more cautious outlook. He said that transaction volumes are likely to remain broadly in line with current levels, suggesting that no major surge in activity is expected over the short term.
From a professional body’s perspective, Nathan Emerson, chief executive of Propertymark, stressed the importance of confidence. “People need to feel a greater degree of confidence as they approach their next house move,” he said. He pointed out that ongoing economic uncertainty and persistently high interest rates have deterred many households from entering the market.
Emerson added that with interest rates now slowly edging downwards, mortgage products are becoming more attractive. This, combined with early signs of softening house prices, could help improve activity as the market heads into autumn.
Looking ahead, Emerson identified two critical events likely to shape housing confidence in the coming months: the November Budget and the Bank of England’s next base rate decision. Both, he argued, will have a direct impact on how secure buyers and sellers feel about making property decisions.
In summary, while August’s sales figures show a modest annual improvement, the slight decline from July underlines that the market remains delicate. With interest rates, house prices, and economic policy all playing a role, the next few months will be crucial in determining whether the property sector can build on recent stability or face renewed challenges.
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