UK residential property sales fell by 10.4% in June 2026 across all regions, according to data from market analyst Chris Watkin. However, the decline reflects comparison against an exceptionally strong June 2025, with current transaction levels remaining broadly in line with 2024 and ahead of 2023 figures.
The data indicates that whilst sales momentum has slowed year-on-year, the market continues to operate at stable levels relative to recent historical performance. Industry observers have noted anecdotal concerns about market sentiment linked to geopolitical tensions, though concrete impacts remain difficult to quantify.
Regional variations emerge
Analysis from Zoopla reveals significant regional disparities in market performance. The North East recorded a 6% increase in home sales compared to the previous year, despite buyer demand falling by 20% – the sharpest drop of any UK region. The data suggests committed home movers are driving transactions forward, with limited supply being absorbed quickly, contributing to price gains in the area.
London showed the strongest sales growth, with agreements up 8% year-on-year. However, the capital faces a different dynamic, with 13% more homes listed for sale than twelve months ago. This increased supply is expected to keep price inflation subdued despite stronger transaction volumes.
Mortgage approvals rise
Bank of England figures show mortgage approvals for house purchases increased by 3.1% in April 2026 to 65,945, the highest level since January 2025. Year-on-year, approvals were 9% above April 2025 levels. UK seasonally adjusted residential transactions in April totalled 101,030, down 3% from March’s figure of 103,910, according to HMRC data.
The RICS Residential Market Survey for April 2026 reported challenging macroeconomic conditions, with rising interest rate expectations affecting buyer demand. New buyer enquiries remained negative at -34%, though improved from March’s -40%. Agreed sales held largely steady at -36%, whilst new instructions increased slightly to -3% from -6%, indicating limited fresh supply entering the market.
Pricing pressures continue
Phil Spencer, founder of Move iQ, noted in the PropertyMark Housing Insights Report that buyers are benefiting from a gradual increase in available properties, providing more choice than in previous years. However, mortgage affordability constraints remain significant for many households.
Spencer emphasised that accurate pricing remains crucial for sellers, with the majority of homes still achieving below original asking prices, demonstrating continued value-consciousness among buyers. This pricing dynamic reflects ongoing affordability pressures despite relatively healthy transaction levels.
The market data suggests a property sector operating at stable but cautious levels, with committed buyers and sellers continuing to transact whilst broader demand indicators remain subdued. Regional variations highlight the importance of local supply-demand dynamics in determining market outcomes, with lending activity continuing in prime areas despite wider market headwinds.
