UK residential property transactions fell by 2% in July 2026 compared to the previous month, according to HMRC data, as the summer period dampened market activity.
The latest property transactions data published by HMRC shows that on a seasonally adjusted estimate, the number of residential transactions in July 2026 was 96,710, representing a 1% decline from July 2025 and a 2% drop from June 2026.
The figures follow a brief recovery in June, when transaction levels had appeared to stabilise after two successive months of decline. On a non-seasonally adjusted basis, the data shows 106,620 transactions, 5% higher than July 2025 and 3% higher than June 2026.
Industry response
Nick Leeming, Chairman of Jackson-Stops, attributed the decline to typical seasonal factors. “July’s small decrease does little to alter the wider picture of a market maintaining its footing through the summer,” he said. “Following June’s marginal increase, broadly stable transaction levels are characteristic of a period when holidays naturally interrupt activity, and some households defer decisions until the autumn.”
Leeming noted that Jackson-Stops data indicates 8% of owner-occupiers in England are planning to move or already in the process of doing so.
Richard Donnell, Executive Director at Zoopla, warned that completed housing sales are expected to decline further in the second half of the year. “Higher mortgage rates since the Spring have reduced buying power by 9% compared to the start of the year,” he said.
Donnell added that sales being agreed now are down 6% on last year, though buyer interest shows signs of recovery with searches for homes up 7% year on year.
Market conditions
Jason Tebb, President of OnTheMarket, cited ongoing uncertainty from the Middle East conflict and its impact on energy prices and interest rates as factors dampening activity. However, he noted that the Bank of England’s decision to hold interest rates this year, coupled with recent mortgage pricing adjustments by lenders, is helping with affordability.
“The slowdown in annual growth in average property prices suggests expectations are becoming more aligned with market conditions,” Tebb said.
Amy Reynolds, head of sales at estate agency Antony Roberts, reported noticeably low stock levels creating competition over certain new instructions. “There remains more supply than demand when it comes to smaller flats, although over the summer we have been agreeing more flat sales,” she said.
Reynolds expressed concern that market momentum could slow prematurely ahead of the Budget, noting the importance of fiscal policy focusing on market recovery rather than further disruption.
The transaction data suggests the UK property market continues to face headwinds from affordability constraints and economic uncertainty, though underlying demand remains present among buyers who need to move. The autumn period will be critical in determining whether the market can sustain current activity levels or experiences further contraction.
