Last month 88,690 residential properties changed hands, compared to 74,830 in July 2012, the seasonally-adjusted data showed.

All parts of the UK saw transactions rise year-on-year. While the number of property transactions decreased by 0.6% between June and July 2013, property transactions still stood at their second highest level since the peak of 90,200 in March 2012.

Marsh & Parsons chief executive Peter Rollings said despite the dip the overarching trend was a steady increase in property transactions:

“The main difference in the property market compared to last year is the huge pick-up in positive sentiment. “

Initiatives such as Help to Buy are creating genuine confidence in the market and a sense of fluidity that is rippling across all areas of the UK.

“The fact that low interest rates are almost guaranteed for the foreseeable future will also help to build confidence in buyers’ finances and continue to buoy demand further.”

With so many buyers flooding the market, it was an excellent time to sell property, he added.

Scotland saw the biggest increase in property transactions compared to July 2012 at 28.7%, according to regional data, which is not seasonally adjusted.

Northern Ireland saw the second highest rise, followed by Wales and England.

There were 8,940 non-residential transactions in July 2013 – a 7.6% increase on June and a 13.3% jump year-on-year.