UK property transactions picked up in February but activity remains below last year’s levels following the distortion caused by changes to stamp duty thresholds.
The latest figures from HM Revenue & Customs show an estimated 102,410 residential transactions on a seasonally adjusted basis in February 2026, up 6% on January but 6% lower than the same month a year earlier.
On a non-seasonally adjusted basis, residential transactions totalled 86,430, also 6% down year-on-year but 7% higher month-on-month.
The February uptick marks the strongest monthly performance since March 2025, suggesting a modest recovery in market activity after a weaker start to the year.
SDLT SURGE
However, comparisons with early 2025 remain skewed by the surge in transactions ahead of changes to Stamp Duty Land Tax thresholds introduced in April last year, which pulled forward demand and inflated volumes.
Commercial property transactions followed a similar pattern, with seasonally adjusted non-residential deals reaching 10,150 in February. This was 2% higher than January but still 2% below February 2025 levels.
Non-seasonally adjusted non-residential transactions came in at 8,790, representing a 3% monthly rise and a 2% annual decline.
INDUSTRY REACTION
Nathan Emerson, CEO at Propertymark, says: “An increase in property transactions month-on-month for February is a positive signal for the housing market, suggesting a degree of resilience among buyers and sellers despite a challenging economic backdrop.
“It indicates that there is still underlying demand, with many households continuing to press ahead with planned moves and purchases.
“However, with inflationary pressures building, partly linked to ongoing conflict in the Middle East, and the likelihood of this feeding through into borrowing costs and household finances, there is a risk that market conditions could become less stable in the months ahead.
“While activity has picked up, there remains a delicate balance between demand and affordability. Maintaining buyer confidence, ensuring mortgage products remain accessible, and supporting affordability will be key to sustaining momentum and preventing a slowdown as the year progresses.”
MIDDLE EAST CONFLICT
Tom Bill, head of UK residential research at Knight Frank, says: “Transactions were picking up earlier this year as spring approached and the uncertainty caused by November’s Budget was disappearing into the rearview mirror.
“The recent spike in mortgage rates as a result of the Middle East conflict will have a delayed impact on the housing market as higher rates feed through over the next several months, putting downwards pressure on sales volumes and prices.
“The extent to which demand is kept in check depends on the length and severity of the conflict and how the Bank of England calibrates its response.”
CLARITY AND CONFIDENCE
Jason Tebb, President of OnTheMarket, says: “This transaction data reflects the period following the uncertainty created by pre-Budget speculation and before the Middle East conflict arose.
“The market was picking up, with buyers and sellers keen to make their move and transaction levels at the same level as in the run-up to the end of the stamp duty holiday last year.
“The data shows how important clarity and confidence are for the smooth functioning of the housing market. Our own property sentiment index suggests that focused buyers and sellers are getting on with the business of moving, with many having already delayed decisions and not prepared, or able to, hold off any longer.
“Although mortgage rates are edging upwards, these come on the back of several base-rate reductions from the Bank of England. Many borrowers are still in a better position as far as affordability is concerned than they were a couple of years ago.
“The increase in sellers bringing their homes to market this spring will keep prices in check to an extent, which should further assist those looking to move.”
CAUTIOUS BUYERS
Jeremy Leaf, north London estate agent and a former RICS Residential Chairman, says: “These strong numbers show just how market activity was gaining momentum in the period leading up to conflict in the Middle East.
“Completed sales are generally a better indicator of housing market health than more volatile prices, not least because these include cash and mortgage transactions. There was no question how the volume of enquiries to our offices dropped when the war started.
“However, the more committed buyers and sellers, particularly those relying on lower loan-to-value ratios, are continuing, albeit more cautiously in expectation any negative impact on mortgage costs and inflation will be relatively manageable.”
RESILIENT MARKET
Nick Leeming, Chairman of Jackson-Stops, says: “February’s HMRC property transactions data points to a housing market that remains resilient.
“Activity levels suggest a measured start to the year, with buyers proceeding thoughtfully as mortgage rates continue to fluctuate, encouraging a more considered and deliberate approach to decision-making.
“This marks a clear contrast to the same period last year, when buyers were actively rushing to complete transactions ahead of the stamp duty changes introduced in April 2025. That surge in activity inevitably pulled forward a degree of demand.
“Across our network, we have recorded a noticeable increase in new instructions, particularly in coastal locations and well-connected commuter hotspots.
“Branches such as Newmarket and Taunton have seen property instructions more than double month-on-month, reflecting growing seller confidence as we move toward the spring market.
“Encouragingly, properties priced in line with current market conditions are attracting meaningful interest and progressing to exchange, while those positioned above market expectations are continuing to require greater patience and careful negotiation.”
