UK home sales plunged by 41% annually in March, according to HM Revenue and Customs (HMRC) figures, though the sharp decline is largely attributed to the distortion caused by the end of a stamp duty holiday in 2025. That year, buyers rushed to complete transactions before the deadline, inflating the comparison base.
March 2026 Sales Data
An estimated 104,070 home sales took place across the UK in March 2026, which was 1% higher than the previous month. Despite the significant annual drop, this was the highest monthly figure recorded since March 2025. Mortgage rates have eased in recent weeks but experienced a spike following the Middle East conflict.
Expert Commentary
Frances McDonald, director of research at Savills, noted: "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. Many of these deals will have been agreed and in the pipeline prior to the conflict in the Middle East. The true impact of the recent wave of uncertainty will likely become more apparent in the coming months, once mortgage offers prior to the conflict begin to expire."
Tom Bill, head of UK residential research at Knight Frank, commented: "Mortgage rates have jumped around in recent weeks, given the confused outlook around the length of the conflict and to what extent it could escalate."
Nicky Stevenson, managing director at Fine & Country, said: "The 41% fall is more about last year's distortion than a sudden deterioration in demand. It's also worth remembering these figures reflect completions, which typically lag agreed sales by two to four months. With this in mind, the ongoing headwinds affecting affordability may need a little longer to trickle down to the market."
Iain McKenzie, chief executive of The Guild of Property Professionals, remarked: "Mortgage rate volatility earlier in the year did weigh on sentiment, but with swap rates easing and lenders beginning to trim fixed-rate products, there are early indications of improving confidence."
Jeremy Leaf, a north London estate agent, observed: "The 'need-to-moves' are showing more realism when it comes to negotiations, although the amount of choice of flats in particular means it is taking longer to obtain commitment and some prices are softening a little. Demand for smaller family houses has remained relatively strong as we would expect at this time of year."
Nathan Emerson, chief executive at property professionals' body Propertymark, advised: "As consumers prepare for the traditionally busy spring months to buy and maybe sell a property, they should keep a close eye on mortgage deals and future affordability in terms of ensuring continuity regarding household budgeting in case of future jumps in inflation. Propertymark's sector data recently demonstrated a peak in the number of housing transactions taking in excess of 17 weeks to complete. With current uncertainty within the economy, there is potential for this figure to trend further upwards."
