UK Property Transactions Decline 2% Year-on-Year in August
UK property transactions declined 2% year-on-year in August, according to new data from HMRC. The figure of 95,220 deals completed in August marks a continuation of subdued market activity ahead of the autumn Budget.
The seasonally adjusted transaction figures show a decline compared to both July and last year's August. Non-seasonally adjusted transactions dropped 11% between July and August.
Industry observers point to budget uncertainty as a key factor weighing on the market, with potential property tax changes potentially affecting investors and homeowners.
Nicky Stevenson of Fine & Country noted that inflation reached 3.1% in August, while the Bank of England has kept the Bank Rate at 3.75%, highlighting the impact of higher energy prices on the inflation outlook.
Iain McKenzie of The Guild of Property Professionals suggested that affordability pressures are tempering the traditional autumn pick-up in activity.