Despite early signs of renewed momentum towards the end of December, property transaction activity in the fourth quarter was dampened by hesitation, Landmark Information Group’s fourth quarter report reveals.
This comes as external economic and fiscal factors continued to cause buyers and sellers to delay moving decisions.
The report found that the late-November Budget prolonged uncertainty, as elevated stock levels and record asking-price reductions reinforced a widespread ‘wait-and-see’ approach among sellers.
However, it shows that signs of renewed activity started to emerge towards the end of December.
It suggests that the market had paused rather than experienced a loss of activity.
Landmark says with the right, stable market conditions, the UK is entering 2026 with grounds for cautious optimism.
The data shows that listing volumes across England and Wales were more resilient in the first half of the year, following around 18 months of consistently strong supply through to July 2025.
Activity began to slow over the summer and weakened further into Q4, with listings falling 7% year-on-year.
However, a post-Christmas uplift in listing volumes could suggest that this slowdown reflects hesitation rather than withdrawal.
Meanwhile, the subdued volumes in Q4 were reflected across the transaction pipeline. Sold subject to contract (SSTC) volumes were down 17% across the quarter, compared with the same period in 2024.
November alone was the weakest month of the year, with SSTC volumes 25% lower year-on-year, coinciding with peak uncertainty ahead of the Autumn Budget.
In addition, Landmark’s data shows that mortgage valuation activity was also suppressed in the fourth quarter compared to the first three quarters of the year.
The final three months were down 0.2% compared to the same period in 2024, whereas the first three quarters of the year saw activity 12.2% higher year on year.
Meanwhile, property search order volumes, which were broadly in line with 2024 levels ahead of the Budget, weakened through November and December.
As a result, Q4 search activity finished 19% lower than in Q4 2024.
This trend carried through to completed sales, with completion volumes in the fourth quarter also reflected the loss of momentum seen through the second half of the year with volumes down 6% compared with the same period in 2024.
In contrast, Scotland’s market showed greater resilience towards the end of the year.
While listings dipped slightly in October and November, December outperformed the same month in 2024 as pent-up demand began to feed through.
Sold subject to missives (SSTM) volumes picked up in December, and with the Scottish Budget falling in January, Scotland avoided the sharper pause seen in England and Wales, entering 2026 with early signs of a stable market.
The pent-up demand building across the market means we enter 2026 with grounds for cautious optimism about the market’s trajectory, should conditions remain conducive and stable.
However, Landmark highlights that improving confidence and driving reform remain critical.
Landmark Information Group chief executive Simon Brown says: “By the end of 2025, it was clear that the market had entered a holding pattern. Uncertainty and speculation surrounding the Autumn Budget led many buyers and sellers to pause decisions and delay moving plans.”
“Record asking-price reductions, easing mortgage rates and signs of renewed activity towards the end of December all point towards the potential for pent-up demand to progress into 2026; offering cause for cautious optimism.”
“As we look ahead, restoring confidence will be critical. Alongside stable economic conditions, improving the speed and certainty of the transaction process must remain a priority if we are to convert that underlying appetite to move into sustainable market momentum and unlock the wider economic value of home buying and selling.”
