The number of residential property transactions decreased by 0.9 per cent between June and July, according to HM Revenue & Customs figures, with this month’s seasonally adjusted total being 8.3 per cent less than the same month last year.
The government’s explanation of recent property trends took in all the oft-cited events this year, including a transaction spike in March, and fall in April due to the stamp duty tax hike being brought in, along with the Bank of England’s plans to curb buy-to-let mortgages, adding to a spring rush.
In March, the highest number of transactions in the last decade was recorded.
The outcome of EU referendum has also had an impact on transactions in recent months, HMRC noted.
For July, the number of non-adjusted residential transactions was about 0.7 per cent higher compared with June.
The number of non-adjusted residential transactions was 13.6 per cent less than in July 2015.
Stephen Smith, director at Legal & General Housing Partnerships, said it was not possible to pin the blame entirely on the vote to Brexit.
However latest analysis from Equifax Touchstone suggested confidence in the property market has waned following the 23 June Brexit vote, with mortgage sales falling 15.7 per cent (£2.5bn) last month, and 16.6 per cent year-on-year (£2.7bn).).
Equifax Touchstone’s relationship manager Iain Hill said the market had been waiting to see how hard property buyers’ confidence had been hit.
He added: “It’s important to remember that the summer period traditionally brings a dip in mortgage sale volumes during July and August, so it will be many months before the full effect of Brexit is uncovered.”
