HMRC figures show a modest monthly decline, with affordability and rate volatility flagged as key watchpoints
UK residential property transactions slipped in July, falling from 98,390 to 96,710, according to the latest HMRC data — though industry figures said underlying activity continues to hold up.
Seasonally adjusted residential property transactions fell 2% in July compared with June, dropping from 98,390 to 96,710.
On an annual basis, the figure was 1% below July 2025 levels.
Non-seasonally adjusted residential transactions, however, rose 3% month-on-month in July.
UK residential property transactions by month between 2023 and 2026
Source: HMRC UK Property Transactions Statistics, July 2026
Mark Harris (pictured right), chief executive of mortgage broker SPF Private Clients, pointed to the modest softening in seasonally adjusted figures as consistent with a market pressing forward under constrained conditions.
"Affordability remains an issue for many so with a number of lenders chipping away at their mortgage pricing in recent weeks, this is good news for those looking to move," he said.
"The Bank of England's decision to hold base rate sends out a strong message of stability, which we hope will continue for a while yet, even if inflation edges upwards in the short term. Volatility in mortgage pricing could well continue to be a feature of the autumn, as the past few months have shown us that the situation can shift quickly with little notice.
"Those in need of a mortgage may wish to secure a product sooner rather than later to protect themselves against fluctuating rates, and can revisit it before completion to see if a cheaper rate is available at that time."
For Nathan Emerson (pictured right), chief executive of industry body Propertymark, the latest HMRC figures suggest 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," Emerson said. "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."
Meanwhile, in the non-residential market, seasonally adjusted transactions were broadly flat, edging up by less than 1% against June but sitting 2% below the same month last year. Non-seasonally adjusted non-residential figures were 3% higher than June and marginally above July 2025.
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