The anticipated autumn recovery in the housing market has failed to materialise, with agreed sales, mortgage activity and completed transactions all falling despite ample property choice. New figures from Landmark Information Group show sales agreed across England and Wales fell 11% year-on-year in the third quarter of 2026, while completed transactions declined 7%.
The slowdown occurred despite relatively stable housing supply. New listings were just 2% below the same period last year, with September volumes matching those recorded in September 2025. However, more available stock and asking-price reductions have failed to generate stronger buyer demand.
Rising mortgage costs and Budget uncertainty weigh on buyers
Landmark's latest Residential Property Trends Report suggests rising mortgage costs and uncertainty ahead of the Autumn Budget are making buyers increasingly reluctant to commit. Although agreed sales increased between August and September, the seasonal improvement was weaker than last year.
The slowdown extended across the mortgage market. Mortgage valuation volumes fell 7% year-on-year in August, before the decline narrowed to 2% in September. Landmark says some borrowers rushed to secure mortgage offers ahead of further rate increases, while others postponed decisions amid concerns about affordability and the wider economy.
Mike Holden, divisional director of growth at Landmark, 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 pipeline weakens
The decline in activity continued beyond the point of sale. Conveyancer search orders fell 12% year-on-year during the third quarter, and the usual September increase also failed to materialise. Completed transactions were down 7%, highlighting weaker activity throughout the homebuying process.
Landmark warned that lengthy transaction times remain a problem, even as fewer buyers and sellers proceed with moves. Elizabeth Jarvis, divisional director of legal and search at Landmark, said: “Market conditions are giving little incentive for buyers to commit to a transaction. The end of summer would normally bring renewed urgency, but neither the lending environment nor the wider policy backdrop is providing much encouragement.
“That caution can persist beyond agreeing a sale. Buyers need confidence to keep progressing their purchase, and the weaker search order activity suggests that maintaining momentum through the transaction is becoming more difficult. Conveyancers and agents should work together to share reliable property information earlier and resolve issues sooner, giving buyers greater certainty to proceed.”
Ex-rental properties add to available stock
Landmark identified former rental properties entering the sales market as one factor supporting housing supply. However, the additional choice has done little to stimulate demand.
Ben Robinson, managing director of Landmark Estate Agency Services, said: “The desire to move can remain even when homeowners choose to postpone their sale. September’s seasonal uplift may reflect some of those delayed decisions coming through, rather than a broader improvement in confidence.
“Ex-rental properties are also a primary driver around sustained property availability, so the mix of homes coming to market matters when assessing seller confidence. If buyer activity remains subdued and wider economic and geopolitical uncertainty continues to weigh on confidence, prospective sellers may continue to delay their plans, making it harder for any renewed momentum from September to carry through the autumn.”
Scottish sales and completions also fall
Scotland experienced a similar slowdown. New listings and sales agreed subject to missives both declined 8% year-on-year during the third quarter, while completed transactions fell 9%. Landmark also reported a shift towards fixed asking prices rather than the traditional offers-over approach, suggesting sellers are adjusting expectations to attract buyers.
The Scottish Government’s first-time buyer incentives, introduced at the end of June, have yet to produce a sustained improvement in activity. Richard Hepburn, Landmark’s director of Scotland, said: “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.”
Little sign of a recovery
Simon Brown, chief executive of Landmark Information Group, warned that the figures offered limited grounds for expecting an imminent improvement. He 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.”
Brown also called for faster property transactions, arguing that better information-sharing between agents, conveyancers and other professionals could reduce delays. The report suggests that housing supply is not the principal obstacle to stronger market activity. Instead, borrowing costs, buyer confidence and uncertainty over future property taxation continue to hold back transactions.
