The UK housing market has started 2026 on a more stable footing, but rising supply and affordability pressures continue to limit the pace of transactions.
According to Landmark Information Group, listing volumes increased by 3% year-on-year in Q1 2026, with a particularly strong rebound in January as sellers returned to the market following delays at the end of last year.
The increase in stock has shifted conditions in favour of buyers, giving them greater choice and negotiating power, while overall demand remains subdued.
Sold subject to contract (SSTC) activity was down 8% year-on-year, although this reflects distortion from the surge in transactions ahead of stamp duty changes in early 2025.
BUYER CAUTION
Mortgage valuation activity rose by 6% over the quarter, driven largely by remortgaging rather than new purchases, highlighting continued caution among prospective buyers.
Search activity also remained slightly below typical seasonal levels, suggesting buyers are taking longer to commit amid ongoing cost-of-living pressures and interest rate uncertainty.
RESILIENT MARKET
Simon Brown (main picture, inset), Chief Executive Officer at Landmark Information Group, says: “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.”
