UK residential property transactions fell by 2% in July compared with the previous month, according to the latest figures from HMRC.
There were an estimated 96,710 seasonally adjusted residential transactions during July, down from 98,390 in June and 1% lower than in July 2025.
On a non seasonally adjusted basis, however, activity increased. HMRC recorded an estimated 106,620 residential transactions, 3% higher than in June and 5% above July last year.
Activity across the financial year to date is also running ahead of last year. Between April and July 2026, there were 389,490 non seasonally adjusted residential transactions, compared with 337,530 during the equivalent period of the previous financial year.
Seasonally adjusted transactions reached 393,800 over the same four month period, up from 342,900 a year earlier.
Nathan Emerson, CEO at Propertymark, comments:
“The latest figures suggest that the residential market is continuing to move in a positive direction, with more buyers and sellers progressing transactions. While this is encouraging, affordability remains a key consideration for households and could continue to influence the pace of activity.
“With transaction levels showing signs of resilience, maintaining consumer confidence and ensuring the home-moving process is as efficient and affordable as possible will be crucial to supporting the market in the months ahead.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says:
“There are noticeably low stock levels, which is creating a bit of competition over certain new instructions.
“There remains more supply than demand when it comes to smaller flats, although over the summer we have been agreeing more flat sales and have definitely felt there is more life in the market.
“We hope that the market continues to gather momentum and doesn’t prematurely slowdown in advance of the Budget – and of course that the Budget doesn’t further derail the property market but focuses on its recovery so that people feel free to move.”
Iain McKenzie, CEO of The Guild of Property Professionals, comments: “July’s transaction data underlines just how cautious the housing market has been this summer.
“However, the underlying picture is more resilient than the headline suggests. The non-seasonally adjusted figure was 5% higher than July 2025, while Zoopla’s latest data showing a 7% year-on-year increase in people searching for homes suggests buyer interest is beginning to stir.
“That interest will take time to translate into enquiries, agreed sales and completed transactions, but it is an encouraging early signal as we head into autumn. Historically, the market sees a seasonal lift between August and September, and we could see that pattern reassert itself if mortgage rates remain stable and some of the current policy uncertainty begins to clear.
“For now, buyers have the advantage of choice, with the stock of homes for sale 5% higher than a year ago. That is keeping price growth in check and giving serious buyers greater scope to negotiate. Sellers, meanwhile, need to recognise that in a more competitive market, realistic pricing and strong presentation are increasingly important.
“The message is not that the market has stalled, but that it is operating with a higher degree of caution. There is still a baseline level of activity, and the right property at the right price will move. The real test will be whether that pent-up interest converts into transactions over the autumn.”
