Residential transactions drop further 3%: HMRC

June's seasonally adjusted figure is 5.7% lower compared with the same month in 2017.

The number of non-adjusted residential transactions was about 13% higher compared with May 2018 but 8.8% lower than in June 2017.

Over the first half of 2018, the seasonally adjusted total is 586,530 completed house sales, 4.5% down on 2017's figure.

Mike Scott, chief property analyst at Yopa, said: "The housing market is slowing down again with the number of house sales completing in June some 5.7% lower than the same month last year, in what is normally the busiest month of the year for completions.

"We now have figures for the first half of the year, and the seasonally adjusted total is 586,530 completed house sales, 4.5% down on the 614,240 in the first half of 2017. It seems likely that the total for the year will fall short of 1.2 million house sales, and so it will be the worst year since 2013, although only down on previous years by a few percent.

"The slowdown seems to be driven by both lower supply and lower demand, and so it is unlikely to have much effect on house prices, which will continue to increase as long as we keep the current situation of low unemployment, low interest rates and good availability of mortgages."

Jeremy Leaf, north London estate agent and former RICS residential chairman, commented: "For us, the number of property transactions is always a much better indicator of market strength than house prices, with recent economic and political uncertainty reflected in these lower, seasonally-adjusted numbers. We certainly would have expected higher figures bearing in mind the spring buying season is generally the best for the property market.

"However, we are not really surprised when, on the ground, we are seeing fewer buyers nervously trying to negotiate best possible terms and transaction times lengthening as a result. We don’t expect to see any great change but have noticed more listings and viewings in the past month or so, which hopefully will be reflected in slightly higher transaction numbers later in the year."

Mark Harris, chief executive of SPF Private Clients, added: "With an August interest rate rise now looking very unlikely, lenders are offering some great summer sizzler mortgage deals that will give a welcome boost to the housing market over coming months. Five-year fixed rates, in particular, are still very attractive with a number pegged at less than 2%, providing security from potential rate rises over the medium term."