The UK's property market took a 10.4% hit in June 2026, with sales plummeting across all regions compared to the same month last year. However, experts argue that this decline is largely a result of an unusually strong performance in June 2025, and that annual figures remain steady. The country's residential transaction levels are actually consistent with those seen in 2024, suggesting a stabilised market rather than a full-blown downturn.
Regional variations continue to play a significant role in the UK's property landscape. In stark contrast to the national trend, the North East bucked the trend by recording a 6% increase in home sales compared to last year. Despite this region experiencing the largest decline in buyer demand at 20%, highly committed buyers are driving transactions, leading to limited available properties being quickly absorbed and price appreciation.
The London market, meanwhile, has shown strong growth in sales agreements, up by 8% year-on-year. However, with a 13% increase in homes listed for sale over the past year, the capital's increased supply is anticipated to keep price inflation subdued despite stronger transaction volumes.
Some promising news emerged from Bank of England data, indicating that mortgage approvals for house purchases rose by 3.1% in April 2026, reaching a six-month high of 65,945 – a 9% increase on the same month last year. However, HMRC figures revealed a 3% drop in seasonally adjusted residential transactions in April to 101,030, compared with March's total of 103,910.
The RICS Residential Market Survey for April 2026 highlighted challenging macroeconomic conditions, with rising interest rate expectations continuing to dampen buyer demand. New buyer enquiries remained negative at -34%, albeit an improvement from March's -40%.
Affordability continues to be a major obstacle for many households, according to Phil Spencer of Move iQ. While buyers are benefiting from increased choice, mortgage affordability constraints remain the primary concern. Accurate pricing is essential for sellers, as most homes still achieve prices below their original asking figures, reflecting ongoing value-consciousness among buyers.