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flag UK home sales fell 5% in January 2026 due to high mortgage costs and economic uncertainty, but recovery is expected with lower rates and improved affordability.

flag UK home sales dropped 5% month-on-month in January 2026, the first significant decline since summer 2025, with 94,680 transactions recorded, slightly below January 2025 levels. flag The drop is attributed to seasonal trends, buyer caution amid recent economic uncertainty, and high mortgage costs, though demand remains stable, particularly for well-priced homes. flag Analysts expect a recovery as falling inflation and anticipated Bank of England rate cuts could ease borrowing costs, boost affordability, and unlock pent-up demand. flag Increased seller activity and improving financing conditions are seen as key drivers for a rebound in the coming months.

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