Buyer demand for homes has started to recover after a subdued start to the year, with new applicant registrations rising 1.5 percent year-on-year to make February the strongest start since 2022, according to data from Connells Group. The estate agency group says the rebound is being led by London, where registrations climbed 8 percent compared with last year and now sit 35 percent above February 2019 levels. Outer London showed the strongest growth at 11 percent.
Stock levels at decade high
The improvement in buyer activity comes despite a sharp rise in available stock. The number of homes for sale is now higher than in any February over the past decade, up 3 percent on last year and 52 percent above 2019 levels. The greater supply is expected to keep price growth modest in the months ahead. This follows Landlord Knowledge’s report on housing market confidence dipping amid geopolitical uncertainty. The Connells data, covering early 2026, suggests the market was showing resilience before the conflict escalated. Nearly 90 percent of newly listed properties have received at least one viewing, while just over half have secured an offer – both slightly above the same period last year. Improving affordability is also narrowing the gap between asking prices and agreed sale prices. Last month, 66 percent of homes in England and Wales sold for less than their original asking price – the lowest share since March 2025. Average discounts have eased to 4.4 percent.
First-time buyers driving London recovery
Aneisha Beveridge, research director at Connells Group, said: “Falling mortgage rates at the start of the year gave the market a boost in February, particularly across the less affordable parts of Southern England where confidence had been most fragile surrounding the Autumn Budget.” She added: “London saw the largest increase in demand, driven predominantly by first-time buyers seeking homes in the suburbs.” Beveridge noted that despite improving demand, stock levels remain high. “There were more homes on the market last month than in any February over the last decade, which is good news for buyers and will keep a cap on price growth in the coming months.” However, she warned that wider economic risks could slow the recovery. “Wider economic inflationary risks are mounting. If they persist, the path for mortgage rates may prove bumpier than expected, which could in turn temper the pace of recovery as we move through the year.” For landlords considering sales, the recent drop in rental competition suggests some tenants are transitioning to buying, potentially opening a window for exits.
What this means for landlords
- If you are considering selling: High stock levels mean realistic pricing is essential – 66 percent of sales complete below asking price.
- Watch for: First-time buyers in London suburbs competing with landlords for property – tenant-to-buyer transitions may increase.
- Bottom line: The market is active but price-sensitive – landlords selling before the RRA deadline should factor in longer sale times than peak periods.
Editor’s view
February’s data shows a market that was finding its feet before geopolitical events intervened. For landlords planning exits, the window remains open but narrows if mortgage rates climb further. Those staying in the sector face a market where tenants increasingly have options.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 12 March 2026
Sources: Connells Group
Related reading: Families with children now more likely to rent than buy with a mortgage
