The estimated number of home sales in March this year was 41% lower than the same month in 2025, according to HM Revenue and Customs (HMRC) figures.
The big annual decrease was driven by high transaction levels a year earlier, ahead of the end of a stamp duty holiday in April 2025, as buyers rushed to complete transactions then.
Across the UK, around 104,070 home sales took place in March 2026, which was 1% higher than the previous month, HMRC said.
Despite a significant decline from a year earlier, the March 2026 home sales figure was the highest since March 2025.
Mortgage rates have been easing in recent weeks, but jumped following the Middle East conflict.
Frances McDonald, director of research at Savills, said: “March transaction data points to a degree of resilience in the UK housing market, as activity maintains momentum on long-term averages, despite ongoing economic pressures.
“However, these numbers have likely been supported by those wanting to lock into mortgage offers and transact ahead of further rate rises. Many of these deals will have been agreed and in the pipeline prior to the conflict in the Middle East.
“The true impact of the recent wave of uncertainty will likely become more apparent in the coming months, once mortgage offers prior to the conflict begin to expire.”
