Figures from HMRC showed that the number of transactions was also up on the previous month, with a 6% lift. Annually, this was 6% lower than completions seen during the same month the year before, when activity was elevated ahead of the stamp duty threshold change.
On a non-seasonally adjusted basis, HMRC recorded 86,430 residential property transactions, a 6% fall on the previous year and 7% higher than in January.
The market was gaining steam
Richard Pike, chief sales and marketing officer at Phoebus Software, said at the start of the year, he believed 2026 would “be the year the mortgage market starts growing again”, adding that February showed the momentum he was expecting.
Pike said this was “clear evidence that the market was accelerating before the Iran conflict reshaped the global outlook”.
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He added: “We are now operating in a very different environment – one defined by rising rates, tightening affordability and a shift in buyer and seller behaviour that will play out over the coming months.
“The mortgage market is entering a period where volatility is likely to remain the norm rather than the exception.”
Mark Harris, chief executive of SPF Private Clients, said when the data was recorded, lower mortgage rates were supporting the housing market, adding: “We saw a strong level of enquiries as buyers got on with moves that they had put on hold due to uncertainty over the Budget.
“Now, with the chance of further interest rate cuts on hold, and talk of rises if the war in the Middle East continues for a prolonged period of time, there is much volatility in mortgage pricing. Borrowers who will need a mortgage in the next six months should consider fixing now for peace of mind and in case rates rise further in the short term at least.”
Jeremy Leaf, North London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chair, said the figures showed how market activity was “gaining momentum” in the lead-up to the conflict in the Middle East.
“However, the more committed buyers and sellers, particularly those relying on lower loan-to-value ratios, are continuing, albeit more cautiously in expectation any negative impact on mortgage costs and inflation will be relatively manageable,” Leaf added.
