Mortgage-led housing activity lost momentum at the end of last year as uncertainty around the Autumn Budget prompted buyers and sellers to delay moving plans, latest data from Landmark Information Group reveals.
Its Residential Property Trends Report for the fourth quarter of 2025 shows mortgage valuation volumes flattened in the final three months of the year, down 0.2% compared with the same period in 2024.
That marked a sharp slowdown after a stronger start to the year, when mortgage valuations in the first three quarters were running 12.2% higher year on year.
The cooling in mortgage activity reflected a wider pause across the housing market. Landmark said uncertainty in the run-up to the late-November Budget, combined with elevated stock levels and record asking price reductions, reinforced a “wait-and-see” approach among buyers and sellers, leaving little prospect of a pre-Christmas recovery.
FLATTENED VOLUMES
Sold subject to contract volumes fell 17% across the quarter compared with a year earlier, with November the weakest month of 2025.
Completions also declined, down 6% year on year in a quarter that typically benefits from a seasonal rush to complete before Christmas.
Mike Holden, divisional director of growth at Landmark Information Group, said: “Mortgage valuation volumes flattened in Q4, down 0.2% compared to the same period in 2024, which reflects how Budget uncertainty dampened purchase-led demand in the final months of 2025.
“This is particularly stark given that the first three quarters of the year saw mortgage valuation activity that was 12.2% higher year-on-year.
“However, the resilience of remortgaging activity, supported by increasingly competitive rates, highlights that borrowers remain highly engaged. As we move into 2026, the combination of easing rates and improved confidence could assist in creating a more buoyant market.”
CAUTIOUS OPTIMISM
Simon Brown (main picture), chief executive of Landmark Information Group, added: “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 and 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.”
