Property transactions remained flat in September amid warnings of market caution in the lead up to the Budget and Brexit.
In its UK property statistics for September, HM Revenue & Customs found residential transactions fell 0.5 per cent from 98,900 in August to 98,400 on a seasonally adjusted basis.
This figure was 2.7 per cent lower than the same month last year, when there were 101,100 transactions.
Jeremy Leaf, London estate agent and former Rics residential chairman, said transactions were a better test of the health of the property market than prices.
He said: "These numbers show the patient to be in reasonable condition but still fairly weak, so vulnerable to any unpleasant Budget medicine which may stall their recovery.
"On the ground, some buyers and sellers are cautiously coming to the market but in nowhere near the numbers hoped for or expected. As a result, sentiment is not strong and only those prepared to negotiate hard are successful."
Mr Leaf said the content of the Budget, one way or the other, would make a difference to property market prospects for the rest of this year in addition to the conclusion of the Brexit negotiations.
Non-residential transactions saw a more significant drop of 6.7 per cent between August and September, with 9,450 completed.
Steve Seal, director of sales and marketing at Bluestone Mortgages, said seasonal activity continued to remain flat, with rising living costs and house prices discouraging aspiring homeowners from entering the property market.
He said: "Again, it’s the same story as last month, and the month before. We also must not forget the added burden of saving enough money on the side to cover a mortgage deposit."
Mr Seal added: "Building more affordable housing isn’t new news. However, it’s not just a question of building more ‘one size fits all’ housing, but building stock across all the different stages of the housing cycle."
Demand may outweigh supply in London but in other parts of the UK, supply outweighs demand due to a lack of appropriate housing stock for aspiring families or those looking to downsize, Mr Seal said.
He added: "With a week until the Autumn Budget, it is vital that the industry and government work together to address these issues and commit to a long-term genuine plan."
rachel.addison@ft.com
