UK Property Transactions Climb 5% as Market Shows Strength Going Into 2026

Stuart Clark
Mar 31
2 min read

The UK property market has kicked off 2026 on a confident note, with the latest HMRC figures revealing a five percent year on year increase in residential property transactions for December 2025. A total of 100,440 completions were recorded on a seasonally adjusted basis, demonstrating that buyer activity remained strong despite uncertainty following the autumn Budget.

While December’s figures came in just under one percent lower than those recorded in November, the annual rise reinforces that demand has held firm as the market transitions into the new year.

First Time Buyers Lead the Momentum

Industry insights suggest that first time buyers played a key role in supporting December’s transaction volume. Many agents have reported consistent month on month and year on year increases in first time buyer completions, which is an encouraging sign for long term stability.

With inflation easing to three percent earlier this month, there is growing optimism that the Bank of England may soon consider lowering the base rate, which could further boost buyer confidence as we move deeper into 2026.

What Is Driving the Late Year Strength

Property specialists note that December’s completion figures mostly reflect transactions initiated before the November Budget announcement. Because completions typically take place several months after an initial agreement, the December data highlights a strong pipeline of demand built earlier in the year.

Some areas, particularly popular coastal regions, saw extraordinary levels of buyer engagement. Certain branches reported double the number of new applicant registrations compared with the previous year. This rise in early stage buyer activity suggests the market could see continued momentum as spring approaches.

The 2026 Outlook Modest Growth Supported by Solid Foundations

Looking ahead, industry forecasts point toward a steady and sustainable uplift in the property market. With demand gradually returning to levels seen in 2024, improving stock availability, and more realistic pricing strategies from sellers, the market appears poised for a balanced and healthy trajectory.

For investors, recent adjustments to Stamp Duty Land Tax remain a central consideration. As updated thresholds fully take effect in early 2026, the coming months will reveal how buyers, particularly investors, adapt to these changes.

What This Means for Property Investors

A five percent annual rise in completions shows that the market is performing far better than many predicted during the post Budget period. For investors who focus on off plan property, the environment is increasingly favourable.

✅ Rising demand

✅ Improved affordability due to easing inflation

✅ Strong first time buyer activity

✅ Increased supply across emerging hotspots

As transaction levels continue to build, 2026 could offer compelling opportunities for investors looking to secure units before prices rise further.

Thinking About Expanding Your Property Portfolio

City and Countrywide specialise in off plan property investment, helping investors secure high yielding opportunities in some of the United Kingdom’s most promising growth regions. If you would like personalised guidance or early access to upcoming developments, our team is here to help.