The UK housing market witnessed a marked reduction in sales activity at the beginning of June, with the number of homes sold subject to contract declining by 8.9% compared to the same week last year. This dip, observed in the week ending 7 June 2026, suggests a loss of momentum following a stronger start to the year, with regional data revealing London and Northern Ireland experienced some of the sharpest contractions in agreed sales.
According to the latest insights into the residential property sector, Northern Ireland saw a dramatic fall of 48.75% in sales agreed compared to June 2025. London also felt the impact significantly, with Outer London experiencing an 18.45% decrease and Inner London a 13.12% drop. Other regions such as the South West (down 11.07%) and the North East (down 10.70%) also recorded double-digit percentage declines. In contrast, Scotland saw a minimal reduction of 0.6%, and Yorkshire & Humber was down by just 2.06%, indicating a varied picture across the nation.
Despite the overall slowdown in sales volume, the market is not collapsing, according to analysis. The average price achieved per square foot rose from £343.77 in April 2026 to £349.64 in May 2026, representing a 1.7% increase last month. This suggests that while fewer homes are finding buyers, those that do sell are still commanding strong values. This trend points towards a more discerning market where buyers are being more cautious about their purchases and the prices they are willing to pay.
For homeowners and prospective buyers, the current environment presents a nuanced picture. New listings are plentiful, with 38.9k new homes coming to market in the week ending 7 June, ahead of the weekly 2026 average of 37.4k and the 10-year week 22 average of 30.9k. Year-to-date listings are also 0.5% ahead of 2025 and 14.5% higher than the 2017-19 average, ensuring a healthy supply of properties for sale. However, year-to-date gross sales are 5.8% lower than 2025, although still 9.6% higher than pre-Covid 2017-19 levels, demonstrating underlying resilience.
This selective market means sellers must be realistic about pricing and presentation. The data suggests that buyers have not disappeared but are rather more selective, rewarding properties that are well-presented and realistically valued. The ongoing context of mortgage rates, which have seen fluctuations over the past year, continues to play a significant role in buyer affordability and decision-making, particularly for first-time buyers navigating the complexities of deposits and stamp duty.