The property market “hasn’t fallen over, but it has become considerably less forgiving”, according to two sentiment reports released this week. Figures compiled by the Royal Institution of Chartered Surveys (RICS) and proptech Sprift show marginal increases in listings and sales, with near and longer term sentiment amongst property market peers improving.
The Sprift Sales Market Intelligence Report, based on July 2026 market activity, indicates new listings rose 2.6% to 209,941, while sales agreed grew a more modest 1.1% to 114,561. Conversion rates have eased steadily since November’s 69.7% peak and currently sit at 54.6%. Nationally, 95,380 listings remain unconverted, and nearly four in 10 carry a price reduction.
The data is mirrored in the latest RICS UK Residential Market Survey, whose members report that the flow of properties coming onto the market stabilised in July. New vendor instructions recorded a net balance of -4%, compared with -23% in June, providing a more optimistic outlook. Market appraisals, when measured against the same period last year, returned a balance of +19%. “Nevertheless, the results suggest the pipeline of new listings remains relatively constrained”, RICS said.
An unchanged number of agreed sales from June still showed volumes down, but “somewhat less negative” than the -37% recorded in April, the surveying body said. Demand sentiment is unchanged, with falling numbers of enquiries – although the pace of deterioration has eased.
In Sprift’s report, falling demand was attributed to the spike in mortgage interest rates; two-year fixed rates reached 5.62% in July, up from 4.83% in February, with consumer confidence at -17. It is against this backdrop their report shows sales agreed growth failed to keep pace with a fresh wave of new listings for the first time since spring.
RICS members reported sentiment towards the future is becoming less downbeat, with near-term sales expectations improving for the fourth successive survey to a net balance of -14%. Expectations over the 12 month period moved to +3%, the most positive reading since February.
Both reports point to “significant” regional variations. RICS members report London, the south east and south west continue to experience more negative price balances than the national average, whilst respondents in Northern Ireland continue to report rising prices. After a sustained period of stronger growth, price momentum in Scotland also appears to be flattening.
According to Sprift, the regional divide is now the widest it has been all year. Scotland leads Great Britain on conversion at 77.0%, followed by Yorkshire and the Humber at 64.5% and Wales at 62.8%. London trails on 39.4%, a gap of 37.6 percentage points, the widest recorded between any two regions this year. Six of the 11 regions convert above the national average, with the West Midlands, north east and north west also outperforming.
Swift CEO Matt Gilpin said: “July is another reminder that there really is no such thing as ‘the UK housing market’. Scotland is converting 77% of new listings. London is converting just 39%. Across Great Britain, new supply grew faster than sales agreed, leaving more than 95,000 July listings still searching for a buyer. The market hasn’t fallen over. But it has become considerably less forgiving.”
RICS chief economist Simon Rubinsohn said: “The housing market remains subdued, and while that is not usual over the summer months, it is clear from the RICS seasonally adjusted data, that the combination of geopolitics, the domestic political climate and the cost of mortgage finance are continuing to weigh on sentiment.
“Significantly, the forward-looking metrics also remain downbeat, which is not the sort of climate likely to encourage housebuilders to step on the gas on existing sites or in land-buying, as highlighted in recent trading statements from developers. Meanwhile, feedback from respondents to the RICS survey is continuing to draw attention to the impact of latest round of regulation on the rental market with the key indicator of new instructions pointing to a further drop in supply.”
