UK home sales fell by 41 per cent in March compared with the same month last year, according to HM Revenue and Customs (HMRC) data. The sharp annual drop was driven by a surge in transactions in March 2025, as buyers rushed to complete purchases before the stamp duty holiday ended.
Around 104,070 properties were sold across the UK in March 2026. Although down significantly year-on-year, this figure was 1 per cent higher than the previous month and represented the highest sales tally since March 2025. Mortgage rates, which had been easing, recently rose amid the conflict in the Middle East.
Frances McDonald, director of research at Savills, said: “March transaction data points to a degree of resilience in the UK housing market, as activity maintains momentum on long-term averages, despite ongoing economic pressures. However, these numbers have likely been supported by those wanting to lock into mortgage offers and transact ahead of further rate rises.”
Tom Bill, head of UK residential research at Knight Frank, noted that mortgage rates have “jumped around” due to uncertainty over the conflict’s length and escalation. Nicky Stevenson, managing director at Fine & Country, argued the 41 per cent fall “is more about last year’s distortion than a sudden deterioration in demand”.
Iain McKenzie of The Guild of Property Professionals pointed to early signs of improving confidence, while Jeremy Leaf, a north London estate agent, observed that “need-to-moves” are showing more realism in negotiations. Nathan Emerson of Propertymark advised consumers to monitor mortgage deals and affordability carefully.
