The UK housing market showed signs of stabilisation in July, with the slowdown in sales easing. The annual gap in agreed sales narrowed to 5.2% last month, having previously run approximately 10% behind 2025 levels since Easter.
Net sales, which account for fall-throughs, have strengthened over the past fortnight, going against the usual seasonal trend of activity slowing during summer. However, it remains uncertain whether this indicates a sustained recovery or a temporary improvement.
Regionally, Scotland was the only area to record annual growth, up 0.3% against July 2025. In contrast, London was the weakest performer, down 4.4% compared to 2025. Across the UK, the number of homes sold subject to contract in July was 5.2% lower than in July 2025, but 13.6% higher than in July 2023.
Year-to-date figures show 715,000 UK homes sold subject to contract, which is 7.1% lower than 2025 but identical to 2024 and 10.7% higher than 2023. The market dynamics suggest buyers have more choice and are selective about pricing, indicating a cooling from 2025 levels but stronger conditions than in 2023.