UK estate agency branches recorded modest growth across sales and lettings activity in March 2026, according to data from Propertymark, with key indicators showing strengthening demand despite ongoing affordability pressures.
On the sales side, the average number of agreed sales per member branch rose to 8.14, while branches typically held around 10.1 properties for sale during the month. New prospective buyer registrations increased to an average of 78 per branch, while viewing activity reached 2.8 viewings per available property, up from the previous month.
Spring market gains momentum
Nathan Emerson, CEO of Propertymark, noted that sales agreed, buyer registrations and viewing activity all moved upward as the traditionally busier spring period commenced. He acknowledged that inflation remained above target and global economic pressures continued to influence sentiment, but observed that many buyers were adapting to current borrowing conditions where pricing expectations aligned with market realities.
Stock levels showed improvement, with more properties entering the market providing greater choice for consumers in some areas. However, affordability pressures continued to affect many households, particularly as mortgage rates remained sensitive to wider economic events. The property auction market has seen increased activity as some homeowners face financial pressures.
Lettings sector remains supply-constrained
In the lettings market, instruction levels increased marginally, with the average number of new fully managed properties rising to 4.5 per branch. Rental price movements remained broadly stable, with 57% of agents reporting unchanged rents, 28% recording increases, and 15% noting falls.
Void periods averaged 3.3 weeks across member branches, indicating relatively steady rental turnover. Arrears issues remained limited, though the proportion of agents reporting problems edged up slightly to 2.2%.
Emerson stated that demand continued to significantly outpace supply despite the modest uplift in available stock. Many agents reported ongoing concern from landlords regarding future regulatory changes, which were influencing investment decisions and contributing to longer-term supply challenges. These concerns come as new regulations grant councils increased enforcement powers over rental properties.
Market outlook
The data suggests the UK housing market entered the spring period with improving momentum in sales activity, though structural challenges persist in the lettings sector. The balance between supply and demand remains a key factor influencing both sales and rental markets, with regulatory uncertainty continuing to affect landlord investment decisions. Meanwhile, buy-to-let financing options continue to evolve as lenders adapt to market conditions.
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