The UK property market showed signs of stabilisation in the first quarter of 2026, though elevated supply levels and affordability pressures continued to constrain buyer activity, according to data from Landmark Information Group.
The firm’s Residential Property Trends Report found conditions across England and Wales remained weighted towards buyers, with increased stock levels providing purchasers with greater choice and negotiating power, while overall transaction momentum remained subdued.
Listings rise but conversions lag
Listing volumes increased by 3% year-on-year in Q1, with a 6% rise 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.
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.
Remortgaging drives mortgage activity
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.
Market outlook
Simon Brown, chief executive of Landmark Information Group, said the data points to a market 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,” he said.
Ben Robinson, managing director of Landmark Estate Agency Services, noted that 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.
The findings come as rental market dynamics also shift, with broader housing market pressures affecting both purchase and rental sectors. The data suggests that while underlying appetite to move remains intact, conversion rates remain constrained by economic uncertainty and affordability challenges.
