The UK housing market is currently navigating a period of increased stock availability coupled with a slowdown in sales activity compared to the robust conditions of 2025. Data reveals that the number of homes sold subject to contract (STC) year-to-date is 6.8% lower than at the same point last year, representing approximately 47,000 fewer agreed sales. This indicates a cooling from the peak activity seen previously, yet the market remains more active than pre-pandemic levels and significantly ahead of 2023 figures, suggesting a degree of underlying resilience.
New property listings have remained strong, with 967,000 new homes coming onto the market year-to-date, mirroring the volume seen in 2025. This figure also stands 4.6% higher than 2024 and an impressive 12.5% above the average for 2017-2019. The increase in available homes means buyers now have a wider selection, intensifying competition among sellers. Consequently, accurate pricing has become a critical factor for properties to successfully secure a sale.
The shift towards a buyer's market is further evidenced by a rise in price reductions. In June, 14.3% of homes on the market saw their asking price reduced, an increase from 13.4% in May. The year-to-date average for price reductions stands at 12.9%, notably higher than the six-year long-term average of 10.7%. This trend highlights the pressure on sellers to adjust their expectations to meet buyer demand and market realities.
Despite the cooling in transaction volumes, the value of property continues to show modest growth. The average price per square foot for homes sold STC in June 2026 was £350.22, marking a 1.94% increase over the past 12 months and a 12.3% rise compared to five years ago. This metric often provides an early indicator of wider house price trends, aligning closely with official Land Registry data with a significant lead time.
For prospective buyers, the increased stock offers more choice, potentially leading to better negotiation opportunities. However, the average rental cost continues its upward trajectory, reaching £1,808 per calendar month (pcm) in June 2026, up from £1,791 pcm in June 2025. This sustained increase in rental prices could make it more challenging for first-time buyers to save for deposits, even with a more varied property market.
Mortgage rates continue to play a significant role in affordability. While not explicitly detailed in the latest figures, prevailing interest rates influence borrowing capacity and buyer confidence. The current market dynamics suggest a recalibration, moving away from the frenetic pace of recent years towards a more balanced, albeit competitive, environment for both buyers and sellers.