"March has brought a typical seasonal lift in prices, and ‘steady rather than strong’ is how I’d describe the start of this year’s spring market"
- Colleen Babcock - Rightmove
Prices of newly listed homes in the UK increased by 0.8% in March, adding £3,023 to reach an average of £371,042, according to new data from Rightmove.
The seasonal rise reflects the start of the spring selling period, although price growth remains restrained as the number of properties available for sale reaches an eleven-year high. For landlords, investors and home-movers, the surge in supply means stronger competition among sellers and greater choice for buyers.
Despite geopolitical uncertainty following the Iran war, market activity has remained relatively stable. Early indicators suggest agreed sales are only slightly behind last year’s levels, while new listings remain higher than in 2024.
UK house prices rise modestly as supply hits 11-year high
The March price increase follows a flat February and sits broadly in line with long-term seasonal averages. However, growth remains lower than in the previous two years.
A key factor is the sharp increase in available homes for sale. The number of properties on the market is now at its highest level for this point in the year since 2014, which has strengthened buyer negotiating power and limited price inflation.
Greater choice has also slowed transaction speeds. The average time required to secure a buyer is currently the longest recorded for this stage of the year since 2013.
“March has brought a typical seasonal lift in prices, and ‘steady rather than strong’ is how I’d describe the start of this year’s spring market,” said Colleen Babcock, property expert at Rightmove. “With the number of homes for sale at its highest level for over a decade, buyers have plenty of choice."
"Many sellers are facing stiff competition and the longest average time to sell at this time of year since 2013. In this kind of market, being not only competitive on price, but competitive from the outset when setting an asking price for your home is critical. Our research shows that relying on later price reductions is a much tougher and less effective strategy when buyers are very price sensitive and have so many alternatives to choose from.”
For property investors and landlords considering acquisitions, the supply increase may create opportunities to negotiate more favourable purchase prices, particularly in areas where stock levels have risen most sharply.
Market activity remains resilient despite geopolitical uncertainty
Daily activity indicators show the UK property market has remained stable so far during March, despite rising geopolitical tensions.
The latest data from Rightmove indicates:
The number of sales agreed is 2% lower than this time last year
However, transactions remain 5% higher than in 2024
New property listings are 3% below last year’s level
Listings are 7% above the level recorded in 2024
These figures suggest that many buyers and sellers continue to progress transactions despite concerns about mortgage costs and wider economic pressures.
New buyer demand had already softened compared with last year’s stronger market. However, activity has not declined further since the start of the Iran war, indicating that market confidence has held up so far.
Affordability shaping regional price trends
Affordability remains a major factor influencing the direction of UK house prices, with clear regional differences emerging across the country.
Lower-priced markets in the North and devolved nations are recording stronger price growth, while more expensive southern regions are seeing weaker performance.
Key regional trends include:
North West house prices up 2.6% year on year
London house prices down 2.1% year on year
Property type also continues to influence performance. Starter homes are currently the only segment showing annual price declines.
Across the UK:
0–2 bedroom properties are down 0.4% year on year
Second-stepper homes are up 0.6%
Top-of-the-ladder homes remain broadly flat
For first-time buyers, the slight decline in entry-level prices could offer an opportunity, particularly for those with deposits already saved. However, high rents and persistent cost-of-living pressures continue to make saving challenging.
Mortgage rates edge higher amid global uncertainty
Mortgage rates remain lower than they were a year ago, although recent weeks have seen renewed upward pressure.
Rightmove’s daily mortgage tracker shows the average two-year fixed mortgage rate has increased to 4.51%, up from 4.24% the previous week. The change reflects how quickly lenders respond to global economic developments and expectations around inflation.
“Market activity remains stable so far in March, which is encouraging given the new global uncertainty over the last few weeks, though it’s too early to tell what may happen later down the line,” Babcock explained.
“That said, uncertainty is never helpful for market activity, and it’s come at a time when confidence and optimism would usually be building as the spring market gets underway. It’s understandable that many potential buyers may have one eye on news about mortgage rates and wider household costs. For context, the average monthly mortgage payment on a new purchase has increased by around £45 so far, but is still around £70 lower than it would have been at this time last year.”
What property experts are saying
Mortgage pricing is closely linked to swap rates, which reflect financial markets’ expectations for future interest rates.
Matt Smith, mortgage expert at Rightmove, said: “A March Bank Rate cut is unfortunately no longer on the cards and any further Base Rate cuts this year look uncertain. There is, however, no forecast Bank Rate increase either in the view of the financial markets.
“The reason that mortgage rates are rising is that swap rates, the underlying costs of fixed rate deals, take into account the view of Base Rate, and they had priced in at least a 0.25% reduction in March and a potential of a second cut later in the year.
“The recent shocks that the market has seen due to the Iran war have meant that lenders' fixed rate pricing needs to change to reflect the Bank Rate remaining flat for longer.”
Tom Bill, head of UK residential research at Knight Frank, commented, “The UK housing market faces notably more challenging conditions than it did a fortnight ago. The Middle East conflict will keep sentiment and transaction volumes in check, while higher mortgage rates will curb spending power and put downward pressure on prices. However, the extent of both depends on how long the disruption lasts. If there is a resolution in the short-term, the inflationary impact would be less severe, and multiple rate cuts in 2026 could come back onto the table quite quickly.”
Nathan Emerson, CEO of Propertymark, said, “Consumers are generally in a far stronger position to purchase a property than they were a year ago, mainly due to several successive base rate cuts and falls in the rate of inflation as well.
"Our member agents have reported an encouraging start to the year, with a sense of resilience when looking at the number of properties being placed for sale and the number of viewings on each available property, too."
“Housing continues to play a driving role in the UK economy, and we are continuing to see progression regarding overall affordability. Across the last twelve months, we have seen a near 15% drop in the magnitude of fall-throughs reported per member branch, helping demonstrate a stronger degree of determination from both buyers and sellers alike to complete on their transaction.”
Nigel Bishop of buying agency Recoco Property Search said, “House hunters have been considerably more active this year, and March has been no exception. The market could see another boost this month as we enter the traditionally busy spring season. General buyer and seller motivation is expected to hold momentum, but some house hunters await the Bank of England’s upcoming decision to cut interest rates. This, however, looks unlikely amid the impact of current geopolitical developments on the wider economy.”
