"Annual growth has slowed to 0.9%, and buyers are increasingly constrained by affordability rather than confidence in future price gains"
- Rob Owens - e.surv
House price growth across Great Britain slowed in March, with more affordable regions continuing to outperform while higher-value southern markets came under renewed pressure, according to the latest House Price Index from e.surv Chartered Surveyors.
Annual growth moderated to 0.9%, with a clear north-south divide emerging in the data. Scotland recorded the strongest performance at 3.5%, followed by the North West at 2.7%, Wales at 2.6%, and Yorkshire at 2.1%.
London, by contrast, fell 3.1% year on year, with the South East also posting a small annual decline of 0.2%. The South West grew by just 0.6% and the East of England by 0.2%.
"The housing market across Great Britain remains active, but it is clearly becoming more price-sensitive," said Rob Owens, head of research at e.surv. "Annual growth has slowed to 0.9%, and buyers are increasingly constrained by affordability rather than confidence in future price gains."
Despite the moderation in prices, market activity has held up. Valuation instructions undertaken by e.surv in March were almost a third above the 2025 average. The figure includes remortgaging as well as home purchases, but it suggests households are continuing to engage with the market even as higher borrowing costs encourage more cautious decision-making. Historically, this level of activity tends to feed through into completed transactions over the following months.
The regional pattern reflects how mortgage rates are biting differently depending on local price levels. "More affordable parts of Great Britain, including Scotland, the North West, Wales and the Midlands, are continuing to perform better because higher mortgage rates have a less immediate impact on monthly repayments," Owens explained. "In contrast, higher-value markets, particularly London and the South East, remain under pressure as borrowing costs weigh more heavily on purchasing power."
Looking ahead, mortgage rates are expected to remain the main constraint on market conditions, particularly in higher-value regions where affordability is most sensitive to borrowing costs. Modest annual house price growth alongside weaker short-term movement points to a market that is adjusting rather than deteriorating, with e.surv describing current conditions as slower rather than weaker.
