There were an estimated 96,710 home sales in July, according to figures from HMRC
The number of home sales dipped last month as the housing market faced a subdued summer amid higher borrowing costs, new data shows.
Across the UK, there were an estimated 96,710 house sales in July, according to figures from HM Revenue and Customs (HMRC).
This was 1 per cent lower than the same month last year and 2 per cent lower than in June.
Experts said this reflects buyers and sellers being cautious amid higher mortgage rates and geopolitical uncertainty since the Iran war.
Mortgage rates jumped earlier this year after the US-Israel war with Iran began, which affected financial markets in the UK.
They have been edging lower since spring, but many buyers continue to see higher rates than at the start of the year, leading some to put activity on hold.
Jason Tebb, president of OnTheMarket, said: “The ongoing uncertainty created by the Middle East conflict and its impact on energy prices and interest rates continues to dampen activity.
“However, the market’s underlying resilience remains in evidence.
“Buyers and sellers who need to move regardless are adapting to changing circumstances and continuing to proceed.
“The Bank of England’s decision to hold interest rates this year, coupled with a number of lenders easing mortgage pricing in recent weeks, is helping with affordability at a time when the cost of living remains high.”
Richard Donnell, executive director at Zoopla, said house sales have been “holding steady” so far in 2026 but were “set to drop lower in the second half of the year as a result of higher mortgage rates since the spring”.
However, he said there were “clear signs of a rebound in buyer interest as we start the autumn”, adding: “Searches for homes are up 7% year-on-year and the strongest for a year – it is still a buyers market as there are plenty of homes for sale.”
Zoopla’s study earlier this week showed that the number of people searching for homes was higher across every region in the UK in the four weeks to August 16.
The property portal said it indicated increased demand among potential buyers, but cautioned that it would take time for searches to translate to enquiries and sales.
Iain McKenzie, chief executive of The Guild of Property Professionals, said: “July’s transaction data underlines just how cautious the housing market has been this summer.
“However, the underlying picture is more resilient than the headline suggests.
“Historically, the market sees a seasonal lift between August and September, and we could see that pattern reassert itself if mortgage rates remain stable and some of the current policy uncertainty begins to clear.
“There is still a baseline level of activity, and the right property at the right price will move.
“The real test will be whether that pent-up interest converts into transactions over the autumn.”
Join thought-provoking conversations, follow other Independent readers and see their replies