UK property sales agreed in the first quarter of 2026 declined 6.2% compared to the same period in 2025, despite new listings rising 0.6%, according to market data for the week ending 5 April 2026.
The figures show 321,000 homes sold subject to contract year-to-date, though this remains 6.2% higher than 2024 levels and 15.3% above pre-Covid norms. Net sales, which account for fall-throughs, totalled 251,000 properties, down 3.6% on 2025 but 5.9% ahead of 2024.
Exchange volumes decline
Property exchanges to mid-March 2026 fell 9.3% to 172,000, compared with 188,000 in the same period last year. However, analysts noted this gap is expected to narrow as additional March 2026 data enters the system throughout April.
New listings totalled 480,000 properties year-to-date, representing a 7.5% increase on 2024 and an 18.2% rise compared to the 2017-19 average. Weekly listings for week 13 stood at 38,400, down from 40,300 the previous week, though this coincided with the Good Friday period when activity typically drops 10-15%.
Overvaluation concerns persist
Data revealed 47.4% of properties that left estate agents’ books in March were withdrawn unsold. The report attributed this primarily to overvaluation practices, supported by extended sole agency agreements exceeding 20 weeks.
The sell-through rate in February 2026 reached 15.4%, marginally below the 16.1% recorded in February 2025 and the pre-Covid average of 15.5%. Fall-through rates remained at 21% for the week, below the long-term average of 24.2%, though notably higher than the post-Truss crisis period when rates exceeded 40%.
While capital remains active in property markets, the data suggests investors are exercising greater caution. Price reductions affected 13.2% of residential properties in March, consistent with the 13.4% recorded in March 2025.
Pricing and stock levels
The average difference between listing prices and sale agreed prices stood at 22.7%, significantly above the 10-year average of 16-17%. Properties listed at an average of £438,000 sold for approximately £357,000.
House prices on a per-square-foot basis averaged £345.64 in March 2026, representing a 2% increase on the previous year’s £338.97 and a 12.7% rise compared to five years ago. This metric correlates with the HM Land Registry Index with 98% accuracy, five months in advance.
Stock levels reached 717,000 homes on 1 April 2026, up from 706,000 a year earlier. The sales pipeline contained 453,000 properties, slightly below the 461,000 recorded on 1 April 2025.
Rental market stability
The rental sector showed minimal movement, with average rents at £1,740 per calendar month in March 2026, compared to £1,747 in March 2025. Available rental stock remained stable at 312,000 properties, virtually unchanged from 313,000 the previous year. This contrasts with broader discussions around rental market regulation in some regions.
Market outlook
The probability of selling, measured as the percentage of properties that exchanged versus those withdrawn, stood at 52.6% in March 2026, below the seven-year average of 57.6%. Weekly sales agreed averaged 24,700 in 2026, compared to 30,600 in 2025.
Net sales for week 13 totalled 18,500 properties, down from 20,800 the previous week but aligned with the 10-year week 13 average of 19,400. The data indicates a market characterised by adequate supply but softening demand, with pricing strategies and extended marketing periods emerging as key factors affecting transaction volumes.
