UK property transactions rose in February offering new signs of life for the short-term lending market after a subdued start to the year.
The latest figures from HM Revenue & Customs show residential transactions reached 102,410 on a seasonally adjusted basis in February 2026, up 6% on January and marking the strongest monthly total since March 2025.
While activity remains 6% lower than February last year, the month-on-month recovery points to improving deal flow – an important signal for bridging lenders reliant on transaction velocity across both investment and chain-break cases.
Non-seasonally adjusted transactions also climbed, rising 7% to 86,430, reinforcing the view that market momentum is beginning to rebuild following a weaker January.
SDLT SURGE DISTORTION
However, year-on-year comparisons remain distorted by the surge in activity seen in early 2025 ahead of changes to Stamp Duty Land Tax thresholds, which pulled forward a significant volume of deals.
For the bridging sector, the return to growth – albeit from a lower base – suggests a gradual normalisation of demand rather than a sharp rebound. Transaction levels are now approaching those seen before late 2025, when activity softened amid affordability pressures and higher borrowing costs.
Commercial transactions also edged higher, with seasonally adjusted non-residential deals rising 2% month-on-month to 10,150. This segment remains 2% down annually but is recovering after a dip in January, supporting activity in semi-commercial and mixed-use bridging cases.
CAUTIOUS WELCOME
The data is likely to be cautiously welcomed by bridging lenders, where pipeline visibility is closely tied to transaction volumes.
A steady recovery in completions typically feeds through into increased demand for refurbishment loans, auction finance and chain-break solutions.
While volumes remain below the stamp duty-driven highs, February’s figures suggest the market is stabilising – creating a more predictable, if still competitive, environment for short-term lenders.
DWINDLING RECOVERY HOPES
Tomer Aboody, director of specialist lender MT Finance, says: “A small increase in transactions can be attributed to a couple of factors with buyers taking advantage of lower mortgage rates, as well as a delay in completions following the Christmas break.
“Historically, we can see a spike during certain periods when stamp duty was reduced or before it was increased, which is always a good indicator as to how the market reacts with some help when it comes to taxes.
“With the ongoing conflict and unstable economy, hope of lower rates and lower stamp duty are dwindling, but hopefully more stability as we progress through the year will help push rates back down.”
