The UK property market showed signs of stabilizing in the first quarter of 2026, but increased 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 that conditions remained in favor of buyers across England and Wales, with rising stock levels giving buyers more choice and negotiating power, while overall transaction pace remained slow.
Listing volumes in Q1 rose 3% year-on-year, up from 6% growth in January, marking a rebound from the slowdown seen at the end of 2025, when activity was reduced due to uncertainty ahead of the autumn Budget. The data suggests this reflects delayed listings coming to the market rather than an increase in new demand.
Also, sales under contract (SSTC) activity remained 8% below the level seen a year ago, although this comparison is influenced by an increase in transactions ahead of the stamp duty change in March 2025. Month-on-month trends show some improvement, with the gap narrowing significantly by March 2025.
Search order volume was slightly weaker than year-to-date, averaging 1% below 1Q2025 levels, indicating buyers are taking longer to decide amid affordability constraints and interest rate uncertainty.
Mortgage appraisal activity increased 6% year-on-year, driven mainly by re-mortgaging rather than new purchases. In February, remortgage offers rose 28% compared to the previous year, while purchase offers fell 4%, highlighting the difference between how existing homeowners reacted to rate changes and more cautious potential buyers.
Completed transactions have returned to more normal levels after a surge in March 2025, when completion volume was 71% higher year-on-year as buyers rushed to complete before the stamp duty deadline.
Scotland continued to demonstrate strong 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 be completed.
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 dictate when and how people move.
“Activity is increasing but not changing at a pace, with steady momentum not yet being met consistently in the early stages of the transaction process.
“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 signals a clear turning point after the downturn at the end of last year, with listing volumes increasing year-on-year and January seeing particularly strong growth.
“This points to an underlying hunger to move forward that remains strongly intact.”