Property sales agreed volumes fell by 8.1% year-on-year in May, prompting TwentyEA to downgrade its housing market forecast for 2026.
The property data firm recorded 109,922 sales agreed (SSTCs) during the month, down from 119,607 in May 2025. As a result, it has reduced its full-year transactions forecast from 1.2 million to 1.13 million.
If achieved, that would represent a 6.8% decline compared with 2025, although activity would remain 2.6% above 2024 levels.
TwentyEA said increased economic uncertainty has weighed on buyer confidence, with higher energy prices, inflation concerns and mortgage rate expectations all contributing to weaker demand.
The slowdown has been evident across all price bands this year, although comparisons have also been affected by changes to stamp duty introduced in April last year.
Demand has fallen across every UK region apart from Scotland, which was not impacted by the stamp duty changes. Inner London recorded the largest decline in sales agreed, down 11.2% year-on-year, followed by the North West, where volumes fell by 6.7%.
Despite the drop in sales activity, housing supply remains elevated and fall-through rates have continued to improve, suggesting sellers are continuing to bring homes to market and committed buyers are progressing transactions.
Nick Huntley, director of TwentyEA, said: “This weakening of demand, seen particularly during May, points to a likely slowdown in transactions later in the year. As a result, we’ve revised our forecast to reflect a more challenging market backdrop.
“However, across the bigger picture, the market remains very resilient. Demand is still nearly 15% higher than in 2023 and remains ahead of 2024 levels despite the ongoing affordability pressures, geopolitical uncertainty and higher mortgage costs. That resilience reflects the determination of committed buyers, who continue to move even as the market conditions become less certain.”
Despite weaker demand, supply levels remain robust. TwentyEA recorded 794,210 new instructions during the year to the end of May, the highest figure the company has recorded and 2.7% higher than the same period last year.
March proved particularly strong for new listings, with more than 175,000 properties coming to market during the month.
Growth in available stock has been recorded across all price bands, led by homes priced below £200,000, where listings increased by 3.9% year-on-year. Properties in the £200,000 to £350,000 bracket also saw a notable rise, with supply up 3.0%.
At a regional level, housing stock increased across most of the UK. Wales and Northern Ireland were the only areas to record a decline, while the South East saw the strongest growth in supply, up 5.3% compared with a year earlier.
There were also signs of greater transaction stability. The number of fall-throughs fell by 11.1% year-on-year to 115,025, while the proportion of properties experiencing at least one failed sale declined by one percentage point.
Fall-through rates improved across every price bracket, suggesting that although fewer sales are being agreed, those that do reach the agreed stage are more likely to progress through to completion than they were a year ago.
Huntley added: “The positive story in the market right now is supply levels. We’re seeing the highest level of new instructions on record which is good news for buyers, who have more choice than at any point in recent years.
“What’s equally encouraging is that fewer transactions are failing with the decline in fall-through rates across all price bands suggesting a more determined market.
“We cannot overlook an 8% fall in SSTCs, however, for the year to date, transaction prices have so far remained broadly unchanged.”
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Read the orginal article: https://propertyindustryeye.com/housing-market-slowdown-deepens-as-sales-fall-sharply/
