There were 104,760 residential property transactions in the UK in July, up 1.3% from June and 8.3% higher than the corresponding month last year, according to seasonally adjusted statistics from HMRC.  

But HMRC urged caution when making comparisons in transaction levels for July as some buyers may have been deterred by political uncertainty caused by June’s general election, and the EU referendum in June last year.

“After three consecutive falls, it’s encouraging to see property transactions start to pick up again,” said Danny Waters, chief executive officer of Enra. “The political and economic upheaval we have seen in recent months has plagued the property sector, so this increase could be an indication that buyers and sellers are beginning to feel more confident.”

Record-low interest rates are likely to keep demand for property high, but ultimately the government needs to address the ongoing issue of supply, according to Legal & General Mortgage Club director Jeremy Duncombe.

He commented: “We need a long-term solution by building more homes allowing a greater number of affordable properties to come onto the market.

“This will not only provide more choice for second and last-time buyers, but also free up additional housing stock for first-time buyers to secure homeownership.”