Yahoo Finance UK property sales jump to pre-COVID levels in busiest July since 2015
UK home transactions are returning to pre-pandemic levels as the cost of living crisis cools the property market, figures from HM Revenue and Customs (HMRC) show.
According to the numbers published on Tuesday, the number of house sales in July jumped up by a third compared to last year as the typical summer spike in demand increased activity.
In July, an estimated 110,970 residential homes changed hands, compared to the 83,520 recorded in July 2021, and up 6% from July 2019.
That was also 2.6% above the five-year pre-COVID July average, making it the busiest July since 2015.
Transactions jumped 7.2% compared to June, which saw a slowdown in demand in line with a shortage of properties up for sale.
Year-on-year, July sales jumped by 32.9%, according to HMRC’s non-seasonally adjusted estimate.
However, the HMRC warned that the annual surge should be treated with caution as the housing market experienced an unusual spike in demand in June after the period of the stamp duty holiday came to an end.
Read more: House prices jump to £286,000 in June but UK property market is cooling
Despite the bumper sales, analysts say that this is a "small detour" for the property market, rather than a "change of direction".
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: "House sales held up in July, thanks to the usual bumper summer season.
"However, this is a small detour for the market, rather than a change of direction. So as the summer fades, there’s every chance that the busy property market will do so too.
"The market tends to fluctuate, and boom in summer, but if you look at overall trends, sales have been gradually falling since the start of the year."
But, she also warned that the numbers in the coming months will likely "reflect" a hit on affordability due to inflation and rising interest rates.
"In the months ahead, transaction figures are likely to more clearly reflect the fact that runaway inflation, rising interest rates and soaring energy bills are hitting affordability," Coles added. "By the time we reached the summer, the market drained of available property and buyers evaporated."
Separate analysis from the Office for National Statistics also indicates that the UK property market is losing steam.
Figures from the ONS earlier this month showed that the average house price fell to £286,000 in June, with the 7.8% increase over the year to June representing a sharp slowdown.
Watch: Will UK house prices ever fall?
