The number of house sales in June roughly halved compared with the same month a year earlier, according to HM Revenue and Customs (HMRC) figures.
Across the UK, an estimated 95,420 homes changed hands in June, marking a 54.3% decrease compared with the 208,750 sales recorded in June 2021.
HMRC said the figures should be treated with caution as transactions in June 2021 were significantly affected by the stamp duty holiday, which ended last year.
It said there were large sales peaks in March, June and September 2021, caused by temporarily increased “nil rate” bands of property taxes.
The June total was also 7.9% lower than the number of transactions that took place in May this year.
Andrew Montlake, managing director of mortgage broker Coreco, said: “Transactions are down significantly compared to June 2021 as last year’s data was skewed by the stamp duty holiday.
“The slowdown in transactions compared to May this year is likely to be a sign of things to come as people become increasingly cautious as rates rise and the cost-of-living crisis bites. However, for now at least, the jobs market remains strong and that will ensure transactions don’t go off a cliff.”
Anna Clare Harper, director of real estate technology platform IMMO, said fewer transactions add “fuel to the fire of the biggest problem in the market right now: the shortage of quality housing stock to purchase or for rent”.
Jason Tebb, chief executive of property search website OnTheMarket.com, said: “Our own data indicates that sentiment remained positive in June, with 81% of sellers confident they could complete a sale within three months.”