The UK residential property market recorded 22,100 homes sold subject to contract in the week ending 31 May 2026, down from 27,200 the previous week, according to the latest market data. The decline was attributed to the late May bank holiday, which reduced activity levels by approximately 20% across most metrics due to the shorter working week.
Year-to-date figures show 521,000 homes sold subject to contract, representing a 5.6% decrease compared to the same period in 2025 when 552,000 sales were recorded. However, the figure remains 1.7% higher than 2024 levels and 12.1% above 2023, indicating continued market activity despite recent softening.
New listings maintain steady flow
The market received 31,300 new listings during the week, below the 2026 weekly average of 37,600 but in line with seasonal expectations. Year-to-date listings totalled 783,000, marginally ahead of 2025 by 0.6% and 5.1% higher than the same period in 2024. This represents a 14.1% increase compared to the 2017-19 average, suggesting continued seller confidence.
Stock levels stood at 747,000 homes on the market as of 1 June 2026, whilst the sales pipeline contained 461,000 homes as of 1 May 2026, slightly higher than the 447,000 recorded twelve months earlier. With broader monetary policy developments potentially affecting borrowing costs, market participants are closely monitoring transaction volumes.
Price reductions increase above historical norms
Price reductions affected 21,000 properties during the week, with 13.4% of homes on the market experiencing reductions in May. This exceeds the 2025 average of 12.8% and the six-year long-term average of 10.7%. The gap between initial listing prices and achieved sale prices widened to 21.5%, above the ten-year average of 16-17%, with average listing prices at £447,000 compared to sale agreed prices of £368,000.
The sell-through rate, measuring the percentage of homes on agents’ books that went under offer, stood at 14.6% in May 2026, below the pre-pandemic average of 15.5%. Meanwhile, the probability of a sale completing stood at 53.9% in May, below the seven-year average of 57.6%.
Exchanges decline amid stamp duty transition
The market recorded 52,600 exchanges in May 2026, though this figure is expected to increase as additional data is processed. Year-to-date exchanges through April totalled 288,000, down 8% from the 314,000 recorded in the same period of 2025. The decline reflects the conclusion of a stamp duty holiday that ended in April 2025, which had accelerated transactions in the first quarter of last year.
Fall-through rates remained below historical averages at 21.5%, compared to the decade average of 24.5%. In April 2026, 5.1% of homes sold subject to contract fell through, below both the 2025 average of 5.3% and the ten-year average of 5.8%. Net sales for the year totalled 407,000, down 3.6% from 2025 but 1.6% ahead of 2024 and 7.1% above the 2017-19 average.
House prices show modest annual growth
Agreed sales in May 2026 averaged £349.64 per square foot, representing a 1.9% increase from £342.87 recorded twelve months earlier and 13.2% higher than five years ago. The per-square-foot metric at sale agreed stage reportedly matches the HM Land Registry Index with 98% accuracy, five months in advance. As institutional investors continue to deploy capital across UK property assets, pricing trends remain a key indicator of market health.
Rental market shows marginal growth
The rental sector recorded average rents of £1,785 per calendar month in May 2026, up marginally from £1,779 in May 2025. Year-to-date average rents stood at £1,743 per month. Available rental stock decreased slightly to 305,000 properties in May 2026 from 311,000 in May 2025, representing a 1.9% decline in available inventory.
Withdrawals from the market totalled 44,900 in May, though this figure is expected to rise as additional data is processed. This means 46.1% of all homes that left estate agent books in May went unsold, highlighting continued challenges in converting listings to completed sales.
The data indicates a market adjusting to normalised conditions following post-pandemic volatility, with transaction volumes moderating from 2025 highs but remaining above pre-pandemic levels. The increase in price reductions and the gap between listing and achieved prices suggest buyers maintain negotiating power in current market conditions.