The number of residential property transactions totalled 101,070 in July, increasing by 4% year-on-year, HMRC has revealed.

Transactions jumped by 5% month-on-month, although growth dropped after increasing by 17% between May and June.

HMRC’s monthly estimates 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.

The provisional non-seasonally estimate of non-residential transactions totalled 10,620 in June, which was a 4% increase month-on-month and less than 1% up on last year.

Chief sales and marketing officer at Phoebus, Richard Pike, said that the latest results are another indication that confidence is returning to the housing market.

He added: "The widely predicted base rate cut in August has clearly encouraged activity, and as a result of that cut, we could see this momentum build. The next key question is how the MPC moves in September, trying to balance inflationary pressure with rising unemployment. What matters now is ensuring the industry can support buyers and brokers efficiently."

Growth director at Target Group, Melanie Spencer, concluded: "There’s no doubt that there could still be some choppy waters ahead, with inflation far from subdued and real unknowns when it comes global trade and further escalations abroad.

"How this will all play out will be closely watched – most notably by the central bank as they weigh up any further movement on interest rates against sticky inflation and a struggling economy. Even so, it seems there is growing optimism and buyers remain undeterred. With the support of the market, they are keen to push on with plans."

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