The housing market has been described as "subdued", as the seasonally adjusted estimate of the number of UK residential transactions fell by 2% year-on-year in August.

HMRC’s latest data shows that the transaction estimates stood at 95,220, marking a 1% drop month-on-month.

The monthly estimates for property transactions by HMRC are based on its own records as well as those of Revenue Scotland and the Welsh Revenue Authority, for Stamp Duty Land Tax (SDLT), Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) in each of the three nations, respectively.

For non-residential UK transactions, the seasonally adjusted estimate stood at 10,220 in August, falling marginally year-on-year and by 1% from July.

Interim CEO at LMS, Ian Robinson, stated: "August’s transaction figures underline just how subdued the housing market remains. When activity is under pressure, every part of the mortgage and property transaction needs to work as efficiently as possible.

"The challenge isn’t a lack of information – 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."

Growth director at Target Group, Melanie Spencer, added that the latest results were not unexpected, but it is "disappointing to see transactions dip once again".

She concluded: "Mortgage rates have risen sharply since the start of the Iran conflict, as lenders react to volatility in swap rates and the wider economy. With completions data always taking a couple of months to catch up, we are seeing a market that is really feeling those higher borrowing costs in a sustained way.

"The big question is what happens next. Mortgage pricing remains highly volatile and with the Bank of England looking set to break from its holding pattern and inflation still above target, there looks to be little relief on the horizon. Add in speculation around the Budget – particularly on property taxes, stamp duty and a new equity loan scheme and buyers are caught between rushing to complete or lock in a deal or sitting on their hands until they know what they’re dealing with."

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