Your monthly UK housing market update. Covering sold prices, asking prices, surveyor sentiment and what’s next for the property market.
The market slows for summer, but signs of stability are emerging.
HM Land Registry – Sold Prices
At first glance, May’s figures suggest the housing market has lost momentum.
Annual UK sold price inflation eased from 3.9% to 2.7%, with the average home now worth £271,000. But much of the slowdown reflects comparisons with last year’s Stamp Duty changes, rather than a sudden cooling in demand. Prices still rose 0.3% between April and May, well below the 1.5% increase recorded during the same period in 2025. Once seasonal factors are included, prices were flat.
The North East remained England’s strongest performer, with 5.9% annual growth, while London fell 3.7%. Wales (4.2%), Scotland (4.4%) and Northern Ireland (7.4%) all outperformed England.
One statistic is worth watching. Mortgage approvals fell to 56,200, well below the recent six-month average, while transactions eased to 98,000. Buyers are still moving, but affordability is making them more cautious before committing.
Rightmove – Asking Prices
Summer always slows the market, but this year buyers have plenty competing for their attention.
Average asking prices fell 1% (£3,832) in July to £372,359. That is far steeper than the typical 0.2% decline seen over the past decade. Holidays, heatwaves, the World Cup and a change of Prime Minister have all pushed moving home further down many priority lists.
Even so, the market hasn’t stalled. Buyer activity is 6% lower than last year, but agreed sales remain level with the first half of 2024. People are still prepared to move when properties are priced well.
Price matters even more when buyers have so much choice. Stock remains close to a 12-year high, yet 74% of homes that completed this year sold without a price reduction. With mortgage rates easing from 5.08% to 4.92%, committed buyers still have reasons to move.
RICS – Chartered Surveyor Sentiment
RICS has remained one of 2026’s more cautious voices, but this month’s survey suggests the mood is lifting.
New buyer enquiries improved to -29%, the strongest reading since February and up from -34% in each of the previous two months. Agreed sales also became slightly less negative at -32%. Neither points to a booming market, but both suggest the slowdown is easing.
Near-term sales expectations improved to -16%, recovering from -34% in March, while the twelve-month sales outlook stayed marginally positive at +1%.
Supply provides the main warning sign. New instructions fell to -23%, their weakest level for more than a year, while market appraisals slipped to -22%. House prices remain under gentle national pressure at -33%, but longer-term confidence has improved. The twelve-month price outlook rose to +8% (+6% previously), suggesting surveyors expect conditions to improve gradually.
Zoopla – Housing Market Outlook
So where does the market go next? Zoopla believes the answer still rests largely with mortgage rates.
Annual house price growth should ease from 1.4% today to around 1% by year-end. The North of England and Scotland are likely to remain the strongest markets, while London and the South East may see flat prices or modest falls.
A fall in mortgage rates below 4.5% would improve affordability and draw more buyers back – particularly first-time buyers, who remain most sensitive to borrowing costs.
Sales have weakened and are now likely to finish further below 2025 levels than Zoopla first expected. However, the year-on-year gap should narrow during the second half because activity was already subdued in late 2025.
Meanwhile, high stock levels, particularly across southern England, allow buyers to be selective. For sellers, realistic pricing remains the surest way to attract serious interest.
Express Index
For a full, comprehensive breakdown of current property market activity. Visit our Express Index here
Are you thinking of putting your home on the market?
We specialise in helping you get more for your property. Quicker, easier and with less stress.
You can call us any time on 0333 016 5458 where we can provide help, guidance and support.
Get an offer – get a free valuation and offer for your property here