Property Market Stabilises but Affordability and Uncertainty Slow Activity

Why It Matters

The data signals that the housing recovery remains fragile, with affordability pressures and rate uncertainty limiting the conversion of early‑stage interest into completed sales, affecting lenders, builders, and policymakers.

Key Takeaways

• Listing volumes rose 3% YoY, driven by delayed listings.
• Sold‑subject‑to‑contract activity remains 8% below last year.
• Mortgage valuations up 6% YoY, remortgage offers jump 28%.
• Purchase offers fell 4% YoY, showing buyer caution.
• Scotland shows stronger resilience with higher completion rates.

Pulse Analysis

Landmark Information Group’s Q1 2026 Residential Property Trends Report paints a nuanced picture of the UK housing market. While inventory levels have risen, giving buyers more leverage, the overall pace of transactions remains subdued. The 3% year‑on‑year increase in listings, especially the 6% rebound in January, reflects sellers finally re‑entering a market that was stalled by budget‑related uncertainty at the end of 2025. Yet the modest rise in search orders—just 1% below the same period last year—suggests prospective buyers are still weighing affordability amid persistent interest‑rate volatility.

A deeper dive into the financing side reveals a clear split between existing homeowners and new entrants. Mortgage valuation activity climbed 6% YoY, but this growth was almost entirely powered by remortgaging, with offers up 28% in February. In contrast, purchase offers dipped 4%, underscoring a cautious stance among first‑time buyers and investors. The lingering effects of the March 2025 stamp‑duty deadline, which temporarily spiked transaction volumes, are now fading, leaving a more measured flow of deals. This divergence hints that while homeowners are capitalising on rate shifts to refinance, the broader market lacks the confidence to commit to new purchases.

Regional dynamics add another layer of complexity. Scotland’s market demonstrated greater resilience, benefitting from a tighter supply‑demand balance and a smoother transaction process that translated a higher proportion of agreed sales into completions. England and Wales, however, continue to grapple with elevated supply and affordability constraints that dampen buyer enthusiasm. Policymakers aiming to revive the sector must therefore focus on enhancing transaction speed, certainty, and transparency—areas highlighted by Landmark’s CEO—as well as addressing the underlying affordability challenge to unlock sustained growth.