The UK property market experienced a significant downturn in May, with agreed sales plummeting by 8.1% compared to the same period last year. A total of 109,922 properties sold subject to contract (SSTC) were recorded, down from 119,607 in May 2025. The most notable decline was seen in Inner London, where demand dropped by a staggering 11.2%, followed closely by the North West at 6.7%.
Despite this dip in sales, new property listings have reached record levels, with an astonishing 794,210 instructions coming to market for the year to date – a 2.7% increase on the previous year. The month of March 2026 was particularly notable, with over 175,000 properties becoming available. This surge in supply is evident across all price bands, with properties under £200,000 seeing the largest rise at 3.9% year-on-year.
TwentyEA has revised its transaction forecast for the year, anticipating 1.13 million transactions – a reduction from its earlier projection of 1.2 million. This represents a 6.8% fall compared to 2025 but remains 2.6% higher than 2024 levels. Nick Huntley, Director of TwentyEA, acknowledged the slowdown while highlighting the market's resilience, noting that demand is still nearly 15% higher than in 2023.
The factors contributing to this current market dynamic are multifaceted. Ongoing affordability pressures, higher mortgage costs, and geopolitical uncertainty – including the ongoing conflict in the Middle East – are all influencing buyer behaviour. Additionally, changes to Stamp Duty implemented in April 2025 have been identified as a partial contributor to price reductions across all bands.
The current market landscape is characterised by a divergence between supply and demand, with a significant increase in available homes meeting a more hesitant buyer base. This has notable implications for pricing dynamics, with regional variations and differences across price points continuing to shape overall market performance.
Source: TwentyEA