Property market shows resilience amid global pressures

‘Rebound in supply is defining feature’ – report

Residential property trend data for Q1 2026 shows a more stable market at the start of the year, but elevated supply and ongoing uncertainty continue to temper buyer demand and contribute to slow transaction pace, according to the Landmark Information Group’s latest Residential Property Trends Report.

The report shows that the UK housing market has started the year in a more stable, but still subdued position, with conditions across England and Wales continuing to favour buyers. Elevated supply and ongoing affordability pressures mean buyers may remain cautious while holding greater choice and negotiating power, keeping overall momentum constrained.

The data reflects a market readjusting after disruption in the final quarter of 2025. Uncertainty surrounding the Autumn Budget led many buyers and sellers to delay decisions, and while wider economic uncertainty continues to influence confidence, an uplift in activity seen at the start of 2026 points to pent-up supply returning rather than any fundamental strengthening in demand.

Consistently high levels of stock

The rebound in supply has been a defining feature of the start of 2026. Listing volumes rose by 3% year-on-year across Q1 2026, recovering from the slowdown seen in Q4 2025 as sellers delayed activity ahead of the Autumn Budget. January saw the strongest uplift with listing volumes up 6% compared with the same period in 2025. This has resulted in consistently high levels of stock, reinforcing strong intent to sell, giving buyers greater choice.

Sold Subject to Contract (SSTC) activity remained slightly below Q1 2025 levels, down 8% year-on-year, although this reflects the spike witnessed ahead of the Stamp Duty Land Tax (SDLT) deadline at the end of March 2025. Despite this, the underlying trend is improving, with activity rising steadily since November 2025 and the year-on-year gap narrowing significantly from around 25% in November 2025 to just 7% by March 2026. This could point to demand gradually returning, but not at the same pace as supply, with buyers progressing more selectively and taking longer to move through the transaction process.

Search order volumes have followed a more subdued pattern than typical seasonal patterns for this point in the year, averaging 1% lower in Q1 2026 compared to the same period in 2025. This signals that buyers may be taking a more deliberate approach to decision-making, likely driven by expected interest rate increases and cost-of-living pressures.

Mortgage valuation activity increased by 6% across Q1 2026 compared to the same period in 2025, but this was driven primarily by homeowners remortgaging rather than new purchases. In February, remortgage offers were up 28% compared to 2025 levels, while purchase offers fell by 4%. This divergence highlights how existing homeowners are responding to economic conditions, while prospective buyers may be more hesitant, reflecting the ongoing influence of wider economic uncertainty on borrowing behaviour and expectations.

Completed transactions have returned to more typical levels following a spike in March 2025, when completion volumes were 71% higher year-on-year as buyers rushed to complete ahead of Stamp Duty Land Tax (SDLT) changes.

Global pressures and affordability constraints

In contrast, Scotland continues to demonstrate greater resilience, supported by a more balanced relationship between supply and demand. A more efficient transaction process continues to enable a higher proportion of agreed sales to reach completion, supporting stronger overall market performance and offering a clear contrast to the constraints seen elsewhere in the UK.

Simon Brown, CEO, 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.

“By reducing delays and modernising how the system operates, we can better support buyers and sellers, strengthen confidence and enable the market to function more efficiently in all conditions, delivering the positive economic impact associated with it.”

 Ben Robinson, Managing Director of Landmark Estate Agency Services, Landmark Information Group, commented on estate agency trends: “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.

“At the same time, the increase in supply indicates that some sellers may have delayed listing decisions ahead of the Autumn Budget, rather than stepping away from the market altogether. While stock levels remain elevated, this is intensifying competition and giving buyers greater choice as the market continues to adjust.”

Key findings from the data

Cross market activity

• In England and Wales, listing volumes across Q1 2026 were up 3% compared to Q1 2025.
• In England and Wales, sold subject to contract (SSTC) volumes in Q1 2026 were down 8% compared to same quarter in the previous year.
• In England and Wales, search order volumes in Q1 2026 were just 1% lower compared to Q1 2025.
• In England and Wales, completions in Q1 2026 were down 18% compared to Q1 2025, but this does not account for the abnormally high number of completions in March 2025.

A link to the Residential Property Trends Report (England and Wales): Q1 2026 is available here.