The UK property market showed signs of stabilising in the first quarter of 2026, but elevated supply and ongoing affordability pressures continued to weigh on buyer activity, according to new data from Landmark Information Group.
The firm’s latest Residential Property Trends Report found conditions across England and Wales remained in favour of buyers, with increased stock levels giving purchasers more choice and negotiating power, while overall transaction momentum remained subdued.
Listing volumes rose by 3% year-on-year in Q1, with a 6% increase in January marking a rebound from the slowdown seen at the end of 2025, when activity was dampened by uncertainty ahead of the Autumn Budget. The data suggests this reflects delayed listings returning to the market rather than a surge in new demand.
At the same time, sold subject to contract (SSTC) activity remained 8% below levels seen a year earlier, although this comparison is influenced by a spike in transactions ahead of Stamp Duty changes in March 2025. Month-on-month trends show some recovery, with the gap to 2025 narrowing significantly by March.
Search order volumes were slightly weaker than expected for the time of year, averaging 1% below Q1 2025 levels, indicating that buyers are taking longer to make decisions amid affordability constraints and interest rate uncertainty.
Mortgage valuation activity increased by 6% year-on-year, driven largely by remortgaging rather than new purchases. In February, remortgage offers rose by 28% compared with the previous year, while purchase offers fell by 4%, highlighting a divergence between existing homeowners responding to rate changes and more cautious prospective buyers.
Completed transactions have returned to more typical levels following a surge in March 2025, when completion volumes were 71% higher year-on-year as buyers rushed to complete ahead of the Stamp Duty deadline.
Scotland continued to demonstrate stronger market resilience, supported by a more balanced relationship between supply and demand and a more efficient transaction process, enabling a higher proportion of agreed sales to reach completion.
Simon Brown, chief executive of Landmark Information Group, said: “The data points to a market that is showing resilience, but where global pressures and affordability constraints continue to shape how and when people move.
“Activity is building, but not converting at pace, with steady movement at the early stages of the transaction process not consistently translating through to completion yet.
“If we are to unlock the full potential of the housing market, improving the speed, certainty and transparency of the transaction process must remain a priority.”
Ben Robinson, managing director of Landmark Estate Agency Services, commented: “The rebound in supply in Q1 marks a clear turning point after the slowdown at the end of last year, with listing volumes rising year-on-year and a particularly strong uplift in January.
“This points to an underlying appetite to move that remains firmly intact.”
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