Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

UK Housing Market Shows Signs of Stabilisation in July

The UK housing market showed signs of stabilisation in July, following several months of subdued activity. Figures indicate that the slowdown in sales has eased, with net sales strengthening over the past fortnight, contrary to the usual seasonal trend of summer slowdowns.

The annual gap in agreed sales narrowed to 5.2% in July, after running about 10% behind 2025 levels since Easter. Net sales, which account for fall-throughs, have improved, but it remains uncertain whether this marks a sustained recovery or a temporary improvement.

Regional Performance

Across the UK, the number of homes sold subject to contract in July was 5.2% lower than in July 2025, but 13.6% higher than in July 2023, when the market was affected by rising mortgage rates and weakened buyer confidence. Scotland was the only region to record annual growth, up 0.3% against July 2025 and 15.7% compared with 2023. The North West saw the largest annual decline at 9.5% compared with 2025, though activity remained 15.3% above 2023 levels. The East of England showed the strongest three-year improvement, up 21.1% compared with July 2023, despite being down 2.7% on 2025. London was the weakest performer, down 4.4% against 2025 and only 5.6% ahead of 2023.

Year-to-Date Figures

Year-to-date, 715,000 UK homes have been sold subject to contract, 7.1% lower than 2025 but identical to 2024 and 10.7% higher than 2023. Net sales year-to-date stand at 556,000, down 5.5% on 2025 but 12.9% ahead of 2023. New listings totalled 33,600 in week 29, slightly below the weekly 2026 average of 36,900. Year-to-date listings reached 1.069 million, identical to 2025 and 11.4% higher than the 2017-19 average.

Market Conditions

In June 2026, only 50.8% of homes that left agents’ books exchanged and completed, with the remainder withdrawn unsold. This is below the seven-year average exchange to listings ratio of 57.6%. Price reductions affected 14.3% of UK homes for sale in June, up from 13.4% in May and above the 2026 year-to-date average of 12.9%. The long-term six-year average is 10.7%. The difference between listing asking prices and sale agreed asking prices stood at 11.3%, below the 10-year average of 16-17%.

The data suggests buyers have more choice and are selective about pricing. While the market has cooled from 2025 levels, conditions remain considerably stronger than in 2023, when the market faced challenges from monetary policy pressures. Pricing and presentation are increasingly important factors in achieving sales.