UK residential transaction activity slipped into a holding pattern in the final quarter of 2025 as uncertainty surrounding the Autumn Budget prompted buyers and sellers to delay decisions, according to new data from Landmark Information Group.
The group’s Q4 Residential Property Trends Report shows listings, transactions and mortgage-led activity all weakening towards year-end, particularly in England and Wales, as a widespread “wait-and-see” approach took hold across the market.
However, signs of renewed momentum in late December suggest activity has been postponed rather than lost, creating pent-up demand as the market enters 2026.
Listing volumes across England and Wales fell 7% year-on-year in Q4, following around 18 months of strong supply earlier in the cycle.
SLOWING TRANSACTION FLOW
Transaction flow slowed more sharply, with Sold Subject to Contract (SSTC) volumes down 17% year-on-year across the quarter and November emerging as the weakest month of 2025, down 25% annually at the height of Budget speculation.
The slowdown was reflected across the wider transaction pipeline. Mortgage valuation activity flattened in Q4, down 0.2% compared with the same period in 2024, a sharp contrast to the first three quarters of the year, when volumes were up 12.2% year-on-year.
Property search order volumes fell 19% year-on-year, while completion volumes were down 6%, despite Q4 typically benefiting from pre-Christmas urgency.
HOLDING PATTERN
Simon Brown (main picture, inset), chief executive of Landmark Information Group, says: “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.
“Restoring confidence will be critical.”
“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; 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.”
FLEXIBLE FUNDING
For specialist lenders, the data underlines how market hesitation can interrupt mainstream lending pipelines while reinforcing the value of flexible funding solutions. Landmark says that remortgaging activity proved more resilient, supported by increasingly competitive rates.
Mike Holden, divisional director of growth at Landmark Information Group, adds:
“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.”
Scotland proved more resilient, with December listings and transactions outperforming 2024 levels, helped by greater policy clarity.
Landmark says the divergence reinforces the importance of certainty in sustaining momentum – a dynamic likely to shape lending and transaction volumes in the months ahead.
