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

UK Property Transactions Dip in July, HMRC Data Shows Pent-Up Demand

UK residential property transactions fell in July 2026 compared to the previous month, according to provisional HMRC figures. However, non-seasonally adjusted data showed an increase in transactions compared to July 2025, suggesting ongoing demand in the market.

The provisional seasonally adjusted estimate for UK residential property transactions in July 2026 was 96,710. This figure is 2% lower than in June and 1% lower than in July 2025. In contrast, the provisional non-seasonally adjusted figure stood at 106,620, which is 5% higher than a year earlier and 3% higher than the previous month.

Industry figures cited in the report noted that the latest data points to a housing market struggling to gain momentum. The report highlights that mortgage affordability constraints and wider economic uncertainty are affecting demand, with some buyers remaining on the sidelines.

For letting agents and inventory clerks, these trends may signal a slower pace of new tenancies and property moves, as homeowners and buyers weigh up affordability and mortgage rate concerns. The data also suggests that while there is pent-up demand, the market is being influenced by economic factors and household confidence.

The report notes that the main concern for the coming months is whether subdued activity will continue into the autumn. Affordability and borrower confidence are expected to continue constraining the pace of transactions, according to industry commentary included in the source.

Despite the decline in seasonally adjusted transactions, the report indicates that buyers and sellers are still pressing ahead with their plans, and the property market's long-term resilience is highlighted.