The UK property market recorded 441,000 new listings in the first 12 weeks of 2026, representing a 19.4% increase compared to the 2017-19 average, according to market data for the week ending 29 March. However, the sector faces challenges with nearly half of properties leaving estate agents’ books being withdrawn unsold.
Gross sales for the year to date reached 298,000 homes sold subject to contract, down 5.4% on 2025 but 7% higher than 2024. Net sales, which account for fall-throughs, totalled 233,000, representing a 2.8% decline year-on-year but remaining 13.6% above pre-pandemic norms.
Withdrawal rates raise concerns
A significant 46.1% of properties that left estate agents’ books in February were withdrawn without completing a sale. The data attributes this primarily to overvaluing, supported by extended sole agency agreements exceeding 20 weeks. This trend comes as agencies navigate changing market conditions and competitive pressures.
The sell-through rate stood at 15.4% in February 2026, marginally below the 16.1% recorded in February 2025 and the pre-pandemic average of 15.5%. Price reductions affected 11.4% of residential properties for sale in February, down from 12% the previous year.
Exchange activity declines
Exchanges completed by the end of February 2026 totalled 139,000, representing a 5.5% decrease from the 147,000 recorded at the same point in 2025. The fall-through rate stood at 21%, below the long-term average of 24.2% but still impacting transaction completion rates.
Weekly sales agreed averaged 26,300 homes in week 12, marginally above the previous week’s 26,000 but close to the 10-year average of 26,500. The difference between average listing prices and sale agreed prices remained at 21.5%, significantly above the long-term average of 16-17%, with listing prices averaging £442,000 compared to agreed sale prices of £364,000.
Price and stock levels
Property prices averaged £343.36 per square foot for February 2026 agreed sales, marking a 2.3% increase from £335.63 recorded 12 months earlier and an 18.2% rise from five years ago. This metric correlates with HM Land Registry data with 98% accuracy, five months in advance.
Stock levels reached 682,000 homes on the market as of 1 March 2026, up from 675,000 at the same point in 2025. The sales pipeline contained 434,000 homes, slightly lower than the 444,000 recorded a year earlier. Similar to the rental sector facing regulatory adjustments, the sales market continues adapting to changing conditions.
Rental market data
The rental sector saw average monthly rents decline to £1,711 in February 2026 from £1,745 in February 2025. Available rental stock decreased slightly to 305,000 properties from 310,000 the previous year.
The data indicates a market characterised by increased supply and modest price growth, tempered by elevated withdrawal rates and pricing disparities between initial listings and agreed sales. The probability of properties exchanging versus being withdrawn stood at 53.9% in February, below the seven-year average of 57.6%.
