UK residential property transactions climbed to 102,410 on a seasonally adjusted basis in February 2026, up from 96,940 in January, according to HMRC data published in late March 2026. That is the highest monthly total since March 2025. And it signals a market gaining momentum just as supply is also rising sharply - a combination that is starting to tip negotiating power back toward buyers.

The Numbers in Context

The year-on-year picture tells a more cautious story. On a non-seasonally adjusted basis, HMRC recorded 86,430 completions in February 2026, a 6% fall compared with the same month a year earlier, as reported by Mortgage Finance Gazette. That annual dip reflects a distortion from early 2025, when buyers rushed to complete before Stamp Duty Land Tax (SDLT) thresholds were cut in April 2025.

Strip out that base effect and the underlying trend looks more stable. Month-on-month, non-seasonally adjusted transactions rose 7% from January to February. The data shows momentum building as the spring selling season opened.

Non-residential transactions also edged upward. Seasonally adjusted non-residential completions reached 10,150 in February, up 2% from January, according to HMRC data cited by Property Industry Eye. They remain 2% below February 2025 levels, but the direction of travel is positive.

Supply Rising to an 11-Year High

Supply is the story behind the headline figures. Major property portals reported homes listed for sale at an 11-year high for this time of year, according to Property Industry Eye. New instructions have been particularly strong in coastal locations and well-connected commuter towns, with some branches seeing new listings more than double month-on-month.

Tom Bill, head of UK residential research at Knight Frank, told Property Industry Eye that the increase in sellers bringing homes to market will keep prices in check to an extent, and should further assist buyers. The trend is a meaningful shift from the supply constraints that pushed prices upward through much of 2024 and early 2025.

More supply changes the negotiating environment in practical terms. Properties priced in line with current market conditions are attracting interest and progressing to exchange. Those priced above market expectations are taking longer and requiring more careful negotiation. The gap between realistic and optimistic asking prices is widening. For investors assessing entry points, this is a window where patient negotiation can produce better outcomes than the same effort would have a year ago.

What Happens Next

Tom Bill also flagged a forward-looking risk that the February data cannot yet capture. A recent spike in mortgage rates, linked to geopolitical events, will feed through with a delayed impact on sales volumes and prices over the coming months. The February figures reflect conditions before that rate movement. The picture from April 2026 onwards may look different.

The data shows a market in a moderately positive trend, with transaction volumes recovering from a January dip and supply finally giving buyers some breathing room. But the rate environment introduces genuine uncertainty. Year-on-year comparisons will also remain distorted by the April 2025 stamp duty deadline effect for much of the first half of 2026.

For investors, the underlying picture is one of a functioning, active market - not a surging one. Compared to the stamp-duty-driven spike of early 2025, the current environment is calmer and, in many respects, more rational.