Fall in residential and commercial property sales could be a warning sign for Rachel Reeves
Sales for commercial and residential property have fallen, which could be ominous for the chancellor, Rachel Reeves, say leading audit, tax and business advisory firm, Blick Rothenberg.
Heather Powell, a partner at the firm, said: “HMRC’s latest sales figures for residential and commercial properties show a fall in the seasonally adjusted sales for both residential and commercial properties. Which could be a concerning sign for Rachel Reeves as she prepares for the Autumn Budget.”
She added: “The figures for residential sales in August 2025 show a decrease of 2% from 95,240 in July 2025 to 93,630 in August 2025. And the number of commercial transactions in August 2025 is 9,910, 2% lower than August 2024 and 3% lower than July 2025. The three months prior to this showed small increases in sales.”
Heather said: “This could represent a drop in confidence after a summer of leaks and conjecture about tax increases in the November Budget, or it could be a sign of a bigger problem as families and businesses become more concerned about their long-term outlook.”
She added: “The purchase of a property is a long-term investment and is driven by confidence in future earnings, job security and, for a business, ongoing demand for their products and future profits. If families and businesses don’t have that confidence they won’t buy.”
Heather said: “While the chancellor has made lots of statements about growing the UK economy, including in her Labour Party conference speech there is little evidence that these statements are being translated into policies that generate growth. Rachel Reeves and the government must focus on policies in the Autumn Budget and during the forthcoming year that are then implemented to generate the growth that is needed.”