The UK housing market is sending out mixed signals, with sales dipping by 6% in the first 23 weeks of 2026 compared to the same period last year. Despite this decline, volumes are still 1.7% higher than in 2024 and a significant 11.9% above 2023 levels, suggesting that the market is stabilising rather than collapsing.
Regional variations are emerging as clear winners and losers. London bore the brunt of the slowdown, with sales plummeting by 14% compared to last year's equivalent week, while the North East managed a modest 1% decrease. This highlights the increasingly fragmented landscape across the country.
Average sale prices continue their upward march, reaching £349.64 per square foot in May 2026 – a 1.9% increase from last year and a substantial 13.2% rise over five years. However, this growth is accompanied by an increasing number of price reductions, affecting 13.4% of homes for sale in May 2026, up from the 2025 average.
New listings have remained relatively steady, with 36,500 new homes hitting the market in week 23, on a par with the 10-year average. Year-to-date listings reached 859,000, slightly ahead of last year's total. Total market stock levels stood at 747,000 homes on 1st June 2026.
The rental market is also showing signs of adjustment, with average rents reaching £1,785 per calendar month in May 2026 – a modest increase from last year. However, available rental stock decreased to 305,000 properties in May 2026 from 311,000 the previous year. This reduction could indicate landlords reassessing their positions and potentially impacting affordability for renters.
The market appears to be navigating a period of adjustment, with transaction volumes easing back from last year's peaks. Underlying price growth persists, but the increased incidence of price reductions and a sell-through rate below pre-Covid levels suggest that sellers may need to adapt to changing market conditions.