The UK housing market may be stabilizing after months of subdued activity. July’s figures suggest the slowdown in sales has eased.
Annual agreed sales, which had trailed 10% behind 2025 levels since Easter, closed the gap to 5.2% last month. Net sales also improved over the past two weeks, defying the usual summer lull.
The change has led to discussions about whether this indicates a lasting recovery or just a brief increase following the World Cup. For now, the numbers suggest a possible shift, though its staying power is uncertain.
Sales dip against 2025, but rise over 2023
July’s results present a mixed outlook. Homes sold subject to contract were 5.2% lower than in July 2025. However, compared with July 2023—when mortgage rates surged and buyer confidence dropped—sales rose 13.6%.
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Regional variations stand out. Scotland was the only area to see annual growth, up 0.3% against 2025 and 15.7% over 2023. The East of England showed the strongest three-year gain, with sales 21.1% higher than in 2023, despite a 2.7% decline from 2025. London lagged, down 4.4% year-on-year and only 5.6% ahead of 2023.
The North West recorded the largest annual drop, with sales 9.5% below 2025 levels, though still 15.3% above 2023. Other regions followed a similar trend—down compared to last year but well ahead of 2023.
This contrast makes national headlines misleading. The market has cooled from 2025’s peak, but it is not facing the same struggles as in 2023. Most areas are still performing better than that year, even if they fall short of 2025’s unusually active conditions.
Buyers remain active but more selective. Homes that are well-presented, properly marketed, and priced realistically continue to draw interest. Those that overreach initially struggle. The situation reflects a recalibration where preparation and pricing carry greater weight.
Price cuts and fall-throughs hold steady
Fall-throughs remain below historical averages. In June, 5.07% of agreed sales collapsed, lower than the 2025 average of 5.3% and the 10-year average of 5.8%.
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Exchanges tell a different story. In June, only 50.8% of homes that left agents’ books completed sales—the rest were withdrawn. That is well below the seven-year average of 57.6%.
Mortgage rates have leveled off but remain higher than before 2022. Many buyers are stretching their budgets, using longer terms or family support to manage costs. This makes the market more vulnerable than the headline numbers imply.
Sellers are also adapting. Some delay listing until prices strengthen, while others hurry to sell before potential rate cuts later this year. This mismatch in expectations explains why some homes sit unsold while others attract competitive bids.
The market is neither collapsing nor rebounding strongly. It is finding a new balance where patience and careful pricing are essential. For those considering a home equity line of credit, understanding these shifts can help in making informed decisions.
