UK house prices stall in March; buyers cautious amid rate uncertainty

(Alliance News) - UK house prices were static in March in a sign of the market slowing and buyers holding back in the face of uncertainty over interest rates, new figures published on Wednesday show.

Across the UK, the average house price in March was GBP268,000, marking no change from February, according to the Office for National Statistics.

The steadying of prices was down from the 1.7% growth recorded in the year to February, and was the lowest inflation rate in nearly two years.

Average prices fell by 0.4% between February and March, whereas they had jumped the year before amid a rush in activity ahead of a deadline before stamp duty relief was cut.

However, there were differences in house price movements in each part of the UK in March.

Average prices fell by 0.6% annually to GBP290,000 in England, while they rose by 2.9% to GBP213,000 in Wales and increased by 1.6% to GBP187,000 in Scotland.

In Northern Ireland, average house prices were 7.4% higher between January and March, compared with the year before, to GBP198,000.

London experienced the steepest drop with average property values falling by 2.1% in the year to March, marking the eighth month in a row that house prices have fallen in the capital.

Ian Futcher, financial planner at Quilter, pointed out that March was the first full month following the Iran war which "quickly injected new global uncertainty into markets".

Mortgage rates shot up after the conflict began and hundreds of deals were taken off the market, before falling again when some calm returned to markets last month.

But interest rates have been held steady, at 3.75%, while the Bank of England assesses the impact of the war on inflation, and some economists are expecting a rate hike later this year.

"Since then, expectations around interest rates have shifted again, pushing mortgage pricing higher, even though rates have since come down from their peaks," Futcher said.

"The risk looking ahead is that transactions being agreed more recently are facing a tougher affordability backdrop than the one reflected in this data.

"That points to continued pressure on activity and pricing in the near-term, with London and other high‑value markets likely to remain the most exposed if borrowing costs stay elevated."

Nathan Emerson, chief executive of Propertymark, said: "Static house prices point to a market that is stabilising after a prolonged period of economic uncertainty and higher borrowing costs.

"Buyers are continuing to view and make offers, but they are negotiating more carefully and remain highly conscious of value and monthly mortgage costs.

"Stability may help rebuild confidence, particularly among first-time buyers who have been waiting for greater certainty around mortgage rates."

By Anna Wise, Press Association Business Reporter

Press Association: Finance

source: PA

Copyright 2026 Alliance News Ltd. All Rights Reserved.