**UK Home Sales Decline Slightly in July Amid Ongoing Mortgage Pressure**
*London, 28 August 2026* – According to data from HM Revenue and Customs, 96,710 residential properties were transferred in the United Kingdom in July 2026. This figure represents a 1 % decline compared with July 2025 and a 2 % drop from the June 2026 total.
The modest slowdown follows a period of rising mortgage rates earlier in the year, which were driven in part by financial‑market reactions to geopolitical tensions involving Israel, the United States and Iran. Although rates have since eased from their spring peaks, many borrowers continue to face higher borrowing costs than at the start of 2026, prompting some prospective buyers to postpone purchases.
### Buyer Interest Remains Elevated
Despite the dip in completed transactions, property‑search activity appears to be strengthening. Data for the four weeks to 16 August 2026 show a 7 % year‑on‑year increase in online searches for homes, the highest level recorded in the past year and observed across all UK regions.
Richard Donnell, executive director at property portal Zoopla, noted that “sales had been holding steady during the first half of 2026 but were likely to weaken in the second half because of higher mortgage rates.” He added that the rise in search activity could signal that buyers who delayed their plans earlier in the year are beginning to reassess their options, even if this does not immediately translate into offers or completed sales.
Jason Tebb, president of the online estate agency OnTheMarket, said that “uncertainty surrounding the Middle East conflict and its effect on energy prices and interest rates was still weighing on activity.” He also pointed out that some lenders have recently reduced mortgage pricing and that the Bank of England has kept its policy rate unchanged this year, factors that could gradually improve affordability for buyers who have been priced out of the market.
### Market Supply
The housing market continues to be relatively well supplied, offering buyers a broader choice of properties. A more abundant inventory may give purchasers greater negotiating power, although the overall impact on price growth remains to be seen.
### Outlook
Analysts suggest that the combination of lingering mortgage cost pressures and geopolitical uncertainty could keep the market cautious in the near term. However, the recent uptick in buyer searches indicates that underlying demand may be resilient, potentially supporting a rebound in transaction volumes later in the year if mortgage conditions stabilize.
*All figures are based on HM Revenue and Customs transaction data and publicly available market research.*
Article source: easterneye.biz | Image credit: Reuters
