Rates swelled from the crossfire heat this week, causing house prices to melt as stock levels continued to mount ever higher. The base rate held firm but doubts are escalating over how much more pressure the Bank of England can withstand should the conflict in the East continue. This has divided borrowers between those who fixed with a preferential rate before the conflict and those who did not. Uncertainty, conveyancing times and stamp duty speculation continued to hinder the market despite the latter being ruled out this year. August looks set to hold more of the same unless tempers and temperatures cool, leaving many buyers and sellers in what seems like perpetual limbo. Welcome to another UK Property News Recap – 31.07.2026.
Stamp Duty rumours run amok
Andy Burnham “stamps” out budget “duty” rumours – providing some certainty for the short term to buyers and sellers. This however didn’t stop the rumour mill from churning out endless possibilities. One of which involved downsizers being spared the tax. For now, nothing is planned but expect some change in the future.
Discounted bulk deals on the rise
Investors are securing 15 to 20% discounts on bulk deals on new homes in London helping developers’ constipated cash flow.
The amount of bulk deals in London rose from 7% to 12% according to real estate adviser CBRE’s analysis of data from housing research firm Molior.
House builders stall delivery until economic forces stop driving prices down and cost up
According to NHBC the number of new homes registered to be built in Q2 2026, fell 4% on Q2 2025 to 29,162. Private sector registrations fell 5% while the rental and affordable sector was broadly unchanged at 10,117 new homes. Regionally the biggest decrease was in the South West down 34% while London saw a dramatic increase of 170%. This was predominately due to larger scale developments registering bulk flats that take longer to deliver.
Student accommodation values fall
Unite focuses on “UK’s strongest universities” selling off 15,000 to 20,000 beds in other areas to strengthen their portfolio, which made a £417m loss in the 6 months to June 2026. High interest rates and economic uncertainty lead to a 5.8% drop in the portfolio property value while like-for-like rental income increased 1%. This however proved little relief as operating costs rose 2%. Education is a costly game when navigating geopolitical ignorance.
Smaller properties see PCL rental prices rise
Smaller, cheaper properties in the prime central rental sector led the surge in prices over more expensive properties in Q2 2026. Domestic outer prime London rents in the South West dominated rental growth with increases of on average 1.2% over the second quarter, while annual growth reached 2.5%. In Central London however rental growth was constrained to 0.4% in the quarter, 1.5% higher than a year ago. Once again properties asking over £100,000 per annum were hit the hardest versus smaller offerings in the same area. Regional prime markets fared better with 1.3% growth over the quarter, up 1% annually. Rental properties within the commuter belt driving prices.
Moving forward Savills forecasts rents to continue to rise with outer prime markets leading the way.
Mortgage approvals climb in June
Buyers and those looking to remortgage sensing the earlier rate they fixed was preferable to what was likely to come down the line, pressed ahead and made their move. Net mortgage approvals for house purchases increased to 58,200 in June, from 56,600 in May. At the same time approvals for remortgaging with a different lender also increased to 34,200 in June, from 33,800 in May.
Mortgage figures in March this year show the promise 2026 was supposed to be for the UK property market before many were forced to retreat once more as rates climbed off the back of the Iran war. However, after years of turbulence and uncertainty, others sick of waiting are still braving the economic uncertainty and pressing ahead. Putting home before politics.
House prices fall as stock levels rise
Exposed under the glare of the summer sun, house prices melt while stock levels rise as buyers deterred by higher interest rates and prolonged uncertainty take a prolonged sabbatical over the summer to see how the land lies come autumn. As a result, Zoopla found agreed sales fell 9% with the North East proving the only outlier with a 4% rise. Prices on average may have appeared to have increased by £3,400 but this average was driven by demand in the North West propping up prices versus a lack of drive in the Capital causing prices to fall. This pattern is likely to continue until a resolution can be found and held in the East and Burnham has set up his stall.
Buyer cautions hits Foxtons’ bottom line
What a difference a year makes…Foxtons’ interim results showed profit before tax nosedived 57% to £4.4mn in the first half of the year. Despite increased activity in the build to rent sector and an uptake in property management – after the commencement of the Renters’ Right Act – lettings couldn’t save the group’s bottom line as revenue from sales fell 13% in response to global and economic uncertainty.
Interest rates rise
Swap rate volatility has caused lenders to retract lower rate offers at speed leaving many a first time buyer exposed to 6% rates once more. This will deter some buyers but not those who bagged a cheaper rate earlier in the year. The market is now divided by those who desperately want to find so they don’t lose their rate and those retreating till the rate tide changes. For those remortgaging, who hoped for better rates as the year progressed, fixing now before further rises could save them a pretty penny.
Base rate holds at 3.75%
Uncertainty is beginning to set in amongst the ranks of the MPC committee. For now though, the majority of the committee members voted, by six votes to three, for a “wait and see” approach rather than acting prematurely against the unknown potential repercussions of second-round effects from the ongoing conflict in Iran. This hiatus or stay of execution was expected but for those struggling to make ends meet it will provide little comfort.
Bagging a buyer takes southern sellers significantly longer than those in the North
Scottish sellers move on with certainty after a mere 29 days with completion following on average 69 days later. At the other end of the country, Londoners have to wait 70 days and then a further 104 days to complete. Holding a buyer captive for a prolonged period is tricky as the smallest issue can snowball into a make or break scenario through pure frustration at the lack of movement. Streamlining the buyer process would avoid this and provide greater certainty for both buyer and seller from the start. Over the years there has been lots of encouraging noises about doing this but actioning it remains a drawn out affair.
Nationwide reports house prices on the move
UK house prices remained broadly unmoved by the onset of July, edging up just 0.1% on June’s efforts causing annual house price growth, on Nationwide’s index, to slow to 1.8% in July, from 2.2% in June. The housing market continues to be peppered by seasonal variation that is skewering the overall picture but take it apart and you’ll find there is an increased appetite for Northern regions while Southern buyers struggle to muster any appetite.
Rightmove’s revenue continues to grow
Despite a new homes reduction of 6%, the juggernaut that is Rightmove garnered a 7% increase in revenue for the first half of 2026 as agents continue to invest as they vie for buyers attention on the portal shelves to secure a sale and keep sellers onboard. Meanwhile new AI technology on the platform has buyers engaged and tracking the market for developments should rates or prices shift significantly.
That concludes this week’s UK Property News Recap – 31.07.2026. Any comments or questions please get in touch.
