UK residential property sales fell by 10.4% in June 2026 compared to the same month in 2025, according to data from market analyst Chris Watkin. The drop follows a particularly strong June 2025, yet sales this year remain broadly in line with 2024 levels and outpace 2023 figures. The market shows no sharp downturn, with steady activity despite the year-on-year decline.
Industry observers note that buyer sentiment appears cautious, partly due to geopolitical tensions. However, quantifying their exact impact on transactions remains difficult. Zoopla’s analysis highlights uneven regional performance. In the North East, sales rose 6% year-on-year, even as buyer demand fell 20%—the steepest drop in the UK. Local supply constraints appear to be driving transactions, with prices rising in the area.
London saw the strongest sales growth, with agreements up 8% compared to 2025. Yet the capital has 13% more homes for sale than a year ago, which could temper price increases despite higher transaction volumes. This contrast highlights how supply and demand interact differently across regions.
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Bank of England data shows mortgage approvals for house purchases rose 3.1% in April 2026 to 65,945, the highest since January 2025. Year-on-year, approvals were 9% higher in April 2026 than in April 2025. Meanwhile, HMRC reported seasonally adjusted residential transactions in April at 101,030, a 3% drop from March’s total of 103,910.
The RICS Residential Market Survey for April 2026 pointed to persistent challenges. New buyer inquiries were -34%, slightly better than March’s -40%, but agreed sales remained negative at -36%. New instructions improved to -3% from -6%, suggesting limited fresh supply entering the market.
Phil Spencer, founder of Move iQ, noted that while more homes are available now than in recent years, affordability issues still hinder many buyers. He emphasized that sellers must price homes accurately, as most still sell for less than their original asking prices. This reflects ongoing buyer caution despite stable transaction levels.
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The property sector appears to be functioning at stable but cautious levels. Committed buyers and sellers continue to transact, even as broader demand indicators remain subdued. Local supply-demand trends play a key role in shaping outcomes, with lending activity persisting in prime areas despite wider market challenges.
Regional disparities suggest that no single factor drives the market uniformly. In the North East, limited supply fuels price gains, while London’s surplus listings may curb inflation. These patterns mirror past cycles, where localized conditions often outpace national trends. Today’s situation shows a mix of similar and divergent forces.
The market’s resilience amid uncertainty hints at a sector adapting to shifting priorities. Whether this stability holds depends on how quickly affordability improves and whether supply constraints ease in key regions. For now, the data paints a picture of a market balancing caution with pockets of growth.
