The number of residential property transactions has fallen after months of gradually slowing growth.
The total number of property deals was 100,850 in September - down 1.8 per cent on the previous month - according to a seasonally adjusted estimate by HM Revenue & Customs.
It is the first time since May that transactions have fallen on a seasonally adjusted basis but in June, July and August they grew by only 1.8 per cent, 0.5 per cent and 0.1 per cent respectively.
On an annual basis, property deals were up by 4.6 per cent.
The data adds to a picture of a flatlining housing market, with the latest statistics from the Royal Institution of Chartered Surveyors (Rics) showing demand from new buyers and sales continued to fall in August.
Rics said a shift in interest rate expectations had contributed to buyer caution in a slowing market.
Mortgage lenders have been raising interest rates in recent weeks in anticipation of an increase in the base rate by the Bank of England’s monetary policy committee, which meets next week.
Meanwhile, Your Move’s September house price index showed prices fell for the sixth consecutive month across England and Wales as a whole, partly due to a significant slowdown in London and the south east.
Jeremy Leaf, north London estate agent and former Rics residential chairman, said: “This is the latest in a series of housing data showing some softening in activity but certainly no collapse, despite a likely imminent interest rate rise and economic uncertainty.
“On the ground, trading is still tough but buyers and sellers prepared to be realistic are still making deals happen - especially at more affordable price levels.”
Jeremy Duncombe, director, Legal & General Mortgage Club, added: “These results follow the trend we have seen since the beginning of 2017 - a stagnant housing market as homeowners choose to stay put.
“With no real incentive or boost for house building, supply remains subdued and buyer activity remains sluggish. The only way we will see transaction numbers grow is with an injection of activity into the housebuilding sector that has to be led by No 10.
“It’s great that housing is a key issue for this government, but only time will tell if they can deliver on their promises. Otherwise, intergenerational inequality in the housing market will continue to rise, with Generation Rent struggling to become Generation Buy.”
simon.allin@ft.com
