Housing market activity weakened across England and Wales during the third quarter of 2026, with agreed sales, mortgage valuations and completed transactions all falling below last year’s levels, according to Landmark Information Group.
The company’s latest Residential Property Trends Report suggests that the improvement in buyer demand recorded towards the end of the first half of the year has faded, with September failing to deliver the usual seasonal recovery.
Sold subject to contract (SSTC) volumes averaged 11% below the corresponding period in 2025, while completed transactions were 7% lower year-on-year.
Uncertainty ahead of the Autumn Budget, rising mortgage costs and wider economic pressures have contributed to buyer hesitation, despite an abundance of properties for sale and reductions in asking prices.
New listings across England and Wales were just 2% below last year’s levels during the quarter, with September volumes matching those recorded in September 2025.
Properties leaving the private rented sector have added to supply, while existing stock has continued to provide prospective purchasers with considerable choice. However, the greater availability of homes has not translated into stronger demand.
MORTGAGE ACTIVITY REMAINS WEAK
Mortgage valuation volumes were 7% lower year-on-year in August, although the decline narrowed to 2% in September.
Landmark said fluctuations in mortgage pricing were influencing borrower behaviour, with some applicants seeking to secure offers before further rate increases while others delayed their decisions.
Mike Holden, divisional director of growth at Landmark Information Group, said: “Changes in mortgage rates are influencing when people act. When lenders raise rates, brokers move quickly to secure existing offers for their clients.
“That can bring applications forward, creating bursts of activity followed by quieter periods without a comparable change in underlying demand.
“This means that a rush to secure a mortgage offer can more often reflect concern about rising costs rather than greater confidence about moving, so stronger lending activity should not automatically be read as a recovery in house purchases.”
CONVEYANCING VOLUMES FALL
Activity further along the transaction process also deteriorated, with conveyancer search orders averaging 12% below the same quarter last year.
The anticipated September increase in search orders failed to materialise, indicating that the market entered autumn without the usual seasonal uplift.
Landmark also highlighted persistently lengthy transaction times, warning that reduced volumes were doing little to ease the administrative demands facing conveyancers.
Rob Gurney, managing director of Ochresoft, part of Landmark Information Group, said: “Fewer cases do not necessarily mean a lighter workload for conveyancers.
“The amount of work required within an individual transaction continues to grow, so lower market activity is not delivering the shorter timescales consumers expect.
“At the same time, firms need a steady flow of new instructions to sustain their businesses. Less incoming work alongside increasingly demanding transactions puts pressure on conveyancers, while the gap between consumers’ expectations and their experience of moving continues to widen.
“A quieter market will not resolve these delays on its own. Improving how information is shared and reducing duplication within the transaction process must remain a priority, helping conveyancers progress cases more efficiently and give buyers and sellers greater certainty.”
SCOTTISH SELLERS ADJUST EXPECTATIONS
Scotland experienced a similar slowdown during the quarter, with both new listings and properties sold subject to missives (SSTM) averaging 8% below their respective levels in 2025.
Landmark identified an increase in properties being marketed at fixed prices rather than on an offers-over basis, suggesting that sellers were becoming more willing to adjust their expectations.
First-time buyer incentives introduced by the Scottish government at the end of June had yet to produce a sustained improvement in transaction activity.
Richard Hepburn, director of Scotland at Landmark Information Group, says: “Having homes available does not automatically bring buyers back to the market. People may want to move, but affordability pressures are causing hesitancy.
“The shift towards fixed prices suggests sellers are recognising the need to adjust their expectations to secure a buyer, and first-time buyer support is welcome, but the decision to buy extends beyond the initial cost of getting onto the ladder.
“Until those wider affordability pressures ease, incentives may help individual households without generating a broader recovery in activity.”
CALLS FOR FASTER TRANSACTIONS
Landmark said the slowdown reinforced the case for reforming the homebuying process, particularly through the earlier provision of property information and better communication between professionals involved in transactions.
Simon Brown, chief executive of Landmark Information Group, said: “The market remains subdued, and there is little in this quarter’s data to suggest that will change in the near term.
“People still want to move, but borrowing costs and continued global uncertainty are weighing on their decision to do so. Speculation around possible property tax changes ahead of the Autumn Budget adds to that caution.
“Longer transactions in a quieter market make the need for reform even clearer. Buyers and sellers need reliable information earlier, and professionals need to work together to resolve issues before they delay a move.
“Landmark’s Sales Pack Ready brings searches and condition information to listing, while LandmarkConnect’s digital hubs help connect the professionals involved.
“These are practical steps towards the change championed by the Project 28 Charter and the government’s reform roadmap.
“Overall, success must be measured by shorter transactions and greater certainty for buyers and sellers.”
