There were 102,410 residential property transactions in the UK during February, 6% lower than February 2025 but 6% higher than January, the latest HMRC statistics show.
On a non-seasonally adjusted basis, transactions were 6% lower than February 2025 and 7% higher than January 2026.
Nathan Emerson, CEO at Propertymark, commented: “An increase in property transactions month-on-month for February is a positive signal for the housing market, suggesting a degree of resilience among buyers and sellers despite a challenging economic backdrop. It indicates that there is still underlying demand, with many households continuing to press ahead with planned moves and purchases.
“However, with inflationary pressures building, partly linked to ongoing conflict in the Middle East, and the likelihood of this feeding through into borrowing costs and household finances, there is a risk that market conditions could become less stable in the months ahead. While activity has picked up, there remains a delicate balance between demand and affordability. Maintaining buyer confidence, ensuring mortgage products remain accessible, and supporting affordability will be key to sustaining momentum and preventing a slowdown as the year progresses.”
Andrew Lloyd, managing director at Search Acumen, said: “Today’s decrease in property transaction volumes sets an ominous tone for the market, as dark clouds gather on the horizon. The conflict in the Middle East does not seem to be near resolution and the economic effects are already accelerating, despite not being completely captured in this data.
“Whilst January and February are not typically active times for completions, the decline in volume of residential transactions from the same period last year makes a typical Spring bounce look worlds away, as consumer confidence wanes.
“The US, as a market indicator of what we might expect to see in the coming weeks, shows increasing affordability pressures as mortgage rates there surge to 6.38%, causing overall house sale volumes to fall.
“If we see geopolitical tensions ease and inflation hold, we may see transactions rebound. But as we know, uncertainty is a market killer. What is more likely is that the market volatility we’ve witnessed in recent weeks will become more evident in datasets next month, as deals sit on their hands and buyers wait."
Richard Pike, chief sales and marketing officer at Phoebus Software, added: “At the start of the year, I said 2026 would be the year the mortgage market starts growing again - and February’s figures show exactly the kind of momentum we were expecting. Transaction levels were 7% up on January and the highest since March 2025, clear evidence that the market was accelerating before the Iran conflict reshaped the global outlook.
“We are now operating in a very different environment - one defined by rising rates, tightening affordability and a shift in buyer and seller behaviour that will play out over the coming months.
“The mortgage market is entering a period where volatility is likely to remain the norm rather than the exception. To stay ahead, lenders will need technology that can adapt at pace - systems capable of real time insight, rapid product changes, and seamless operational flexibility. The priority now is building resilience and ensuring organisations are equipped to respond confidently to whatever the market delivers next.”
