Property sales rise 32% between July and August despite end of stamp duty holiday: HMRC

On a non-seasonally adjusted basis, there were 106,150 transactions, 24.8% higher than August 2020 and 28.0% higher than July.

The data reveals that there have now been more than 1 million transactions so far this year for the first time since 2007.

Nick Barnes, head of research at Chestertons, said: “After a record-setting first half of the year, the housing market has been levelling out since June but remains buoyant. Although the impact of the stamp duty holiday has weakened and August is traditionally a quieter month, the London market registered a 54% increase in sales compared to July. We expect activity to pick up as we move into the autumn as there is still substantial unsatisfied demand. Buyers are especially looking for larger properties with gardens and are still able to take advantage of very attractive mortgage offerings.”

Jeremy Leaf, north London estate agent and former RICS residential chairman, commented: "The housing market has proved surprisingly resilient despite the reduction in the stamp duty saving since the beginning of July. Transactions are always a better measure of underlying market strength than more volatile house prices.

"Many buyers brought forward purchases in order to take maximum advantage of the stamp duty concession which began to taper off from 30 June. Enquiries are still considerably above pre-pandemic levels though less activity will mean price growth is likely to continue to slow towards the end of the year. Values are still being supported by shortages of stock and low mortgage rates although valuation appraisals have been increasing lately which usually means instructions are about to pick up.

"Looking forward, the market is likely to cool bearing in mind the impending pressure on real incomes from higher inflation and the withdrawal of the furlough scheme at the end of this month."

Anna Clare Harper, CEO of property consultancy SPI Capital, added: "The uptick in transactions in August reflects the impact of government policy. At the end of June, the temporary reduction in stamp duty began to step down. Investors, homeowners, solicitors and banks pushed hard to get transactions done in time for buyers to complete before the end of June to make the most of this temporary relief. Transactions slowed in July and, since then, the pace has picked up. Buyers are now rushing to complete transactions before the final ‘step down’ in September.

"Throughout this period, interest rates have been low and banks have been happy to lend at a very low cost to potential buyers, boosting transactions further."