The average price of newly listed homes for sale rises by 0.8% (+£2,929) in April to £373,971, a slightly more muted increase than the long-term average of 1.2% for April. While spring usually brings stronger price growth, higher mortgage rates due to global uncertainty are limiting buyers’ spending power and keeping new seller pricing cautious.
With the number of homes for sale at an eleven‑year high and buyers having more choice than in any April over the past decade, competition between sellers remains intense.
Price growth this month is mainly driven by higher-priced, top-of-the-ladder homes (4+ bedrooms), where more buyers are typically discretionary movers and cash purchasers. This means they’re less reliant on mortgage borrowing and less sensitive to increased borrowing costs.
At the same time, geographically, lower-priced Scotland is the strongest price growth performer this month (+4.3%) compared to the higher-priced southern England regions. Lower average asking prices, and therefore lower mortgage borrowing, and a faster home-buying process are supporting larger price increases in Scotland.
Colleen Babcock, property expert at Rightmove comments:
“With mortgage rates remaining elevated due to the war in Iran, it’s not a surprise that price growth is proving strongest in parts of the market less exposed to higher borrowing costs, such as top-of-the-ladder homes, while sectors more exposed to interest rates are seeing slower momentum.
Across Great Britain, Scotland stands out as an example of resilience, with average prices rising by over 4%. Lower average asking prices and a faster home-buying process continue to support price growth in the Scottish market. However, for most of the market, the combination of rising mortgage rates and the number of homes for sale being at its highest level for the time of year over a decade, means that competitive pricing is crucial for sellers looking to attract buyer interest and secure a sale this spring.”
The housing market has so far remained surprisingly resilient, with tailwinds supporting moving activity
The housing market has so far remained surprisingly resilient, despite mortgage rates rising fast in recent weeks due to the uncertainty caused by the war in Iran. Activity trends are difficult to accurately compare with this time last year, as different Easter dates and last year’s ending of temporary stamp duty discounts are affecting year-on-year comparisons.
However, Rightmove’s latest real-time snapshot of daily market activity shows that buyer demand in April to date, measured by enquiries to estate agents about homes for sale, is 7% down compared to the same period in 2025. While demand is lower than last year, it is important to note that this is a continuation of the trend, with March and February also 7% lower in demand for the same period last year, which was a particularly strong market as buyers tried to complete purchases before stamp duty rose.
Additionally, the last seven days have shown some early positive signs of new buyer demand accelerating beyond last year, though this may be partially caused by the timings of the Easter holidays, and it is still too early to assess the full impact of the war in Iran. Next month should bring some further clarity.
While the unexpected headwinds of mortgage rate rises dent the buoyant start to 2026, there are tailwinds keeping the market moving. Although yearly wage growth has slowed, average earnings are still up by 3.9% annually, outpacing asking prices which are down 0.9% year-on-year.
A typical mover is also now able to borrow more, due to last year’s review of the Loan-To-Income cap and reminder to lenders about stress testing flexibility by the Financial Conduct Authority. Despite rate rises usually weighing most heavily on more mortgage-dependant first-time buyers, demand has so far proven most resilient in this group (-6%).
This suggests higher mortgage rates are not putting off many new potential first-time buyers from enquiring at least for now. The number of sales agreed for April to date so far this year is also showing resilience, as we are currently just 3% behind this time last year. In addition, the number of homes newly coming to market is only 1% behind last year, and 13% higher than in 2024, showing that many new sellers are not currently deterred.
What’s happening with mortgage rates?
Colleen Babcock, property expert at Rightmove shares insight:
Rightmove’s daily mortgage tracker shows that the average two‑year fixed rate has risen to 5.42%, from 4.25% before the start of the war in Iran, adding an average of around £235 per month to a typical new mortgage.
“Some buyers will be feeling cautious due to the cost of living and mortgage rate increases. However, the latest data shows that, at least for now, home-movers are largely showing their usual resilience, with their housing needs trumping other events.
While higher mortgage rates negatively affect affordability, many buyers are also benefiting from rising wages, lower house prices and more flexible borrowing criteria than in recent years, which all help affordability. Rightmove’s whole of market real-time data highlights that while some metrics are understandably slightly down, the overall market currently remains resilient.”
Experts’ views
Matt Smith, Rightmove’s mortgage expert, says: “At the start of the year, there was growing optimism that Base Rate would continue to fall, but that picture has shifted following the conflict in Iran. Financial markets are now largely pricing in further Bank of England Base Rate increases this year rather than cuts, which has fed through into higher mortgage rates compared with earlier in 2026 and this time last year.
The initial shock appears to have passed, with mortgage rates stabilising over the past couple of weeks, but they remain elevated. The next moves will depend on upcoming UK inflation data and how the Bank of England responds. If policy decisions align with current market expectations, a period of relative stability is more likely than meaningful falls.
Even if external pressures ease, including improved conditions in the Middle East, history suggests mortgage rates are unlikely to come down quickly, meaning higher borrowing costs are set to remain in place for the foreseeable future.”
Marc von Grundherr, Director of Benham and Reeves, says: “London has remained fairly measured over the start of this year and as is often the case, the capital is taking a little longer than many other areas of the market to respond to improving conditions.
The combination of heightened geopolitical uncertainty and the increase in mortgage rates has understandably caused some buyers to pause for thought, particularly across the higher end of the market, where affordability is already stretched. However, what we’ve seen is not a collapse in confidence, but a more cautious and considered approach from both buyers and sellers.
There are still plenty of reasons for optimism. Wage growth continues to outpace house price inflation, lending criteria have improved, and while mortgage rates have edged higher in recent weeks, they remain below where many buyers expected them to be at the start of the year.
London is often one of the last markets to turn, but when momentum does begin to build it tends to do so strongly. We’re already seeing the early signs of that return, particularly in those areas where pricing remains realistic and buyers can still see long-term value.”
Mark Wiggin, Director of Mark Wiggin Estate Agents, says: “There’s no question buyer confidence has taken a knock after the global events of the past few weeks, but deals are still getting done, and people are still moving.
What really matters right now is price. Homes need to reflect today’s market, not last year’s, and there’s a big difference between being in the market and just sitting on it. Buyers start with three things: the price, the photos and how long a home’s been listed. If something’s been on the market for more than a few months, buyers immediately assume it’s overpriced. In this market, sellers must respond to that feedback – the market always tells you when the price isn’t right.”
Polly Ogden Duffy, Managing Director at John D Wood & Co, says: “With the arrival of spring, pricing has become more critical than ever. With an increased supply of homes – particularly flats lingering from 2025 – buyers have more choice and are less inclined to engage with overpriced properties, meaning sellers who price too ambitiously risk missing out on serious, proceedable buyers.
In contrast, the family housing market is continuing to perform strongly, especially in areas with sought-after schools, where demand can still outstrip supply and, in some cases, result in multiple bids.
While mortgage rates are broadly in line with this time last year, tensions in the Middle East are weighing on confidence in the short term. In London, the market has remained resilient, with competition for family homes continuing despite global uncertainty.
Peter Ryder, Managing Director at Thorntons Property Services, says: The property market across the East of Scotland and Inverness continues to show resilience despite wider economic uncertainty. Increased stock levels are giving buyers more choice and easing the intense competition of recent years, helping create a more balanced and sustainable market.
Well‑priced, well‑presented homes are still attracting strong interest, and activity is being driven by genuine housing needs rather than speculation, providing stability for both buyers and sellers.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says:
“There’s no question that war in the Middle East has had an impact on property market activity, with hostilities continuing but not as severe as feared.
Although the Rightmove data reflects asking, rather than achieved, prices, steeper reductions might have been an early warning of tougher times ahead bearing in mind worries over affordability and especially mortgage rates.
However, in our offices the negative effects have also been relatively limited to date with the overwhelming majority of sales proceeding as well as new listings and buyer enquiries steady. On the other hand, the amount of choice of some property means prices remain flat and transaction times are lengthening.
We have been involved in some fairly intense negotiations, too, with existing as well as new buyers and sellers trying to factor in anticipated increases in costs.
Looking forward, we don’t expect much to change at least until the beginning of the end of the uncertainty is in sight although even then, the after effects will inevitably linger.”
Tomer Aboody, director of specialist lender MT Finance, says:
“With mortgage rates fluctuating due to global affairs, along with lower economic uncertainty due to the Labour government, we are seeing a lower number of transactions but only slightly down compared with this time last year.
With buyers having more options as more homes come to market, prices are still buoyant although rising at a much slower pace. Buyers are slowly realising that the days of virtually “free money” are long gone, and that current rates are actually more or less in line with historical averages, give or take 100 basis points.”
Commenting on latest Rightmove house price data showing a 0.8% MoM increase, Daniel Austin, CEO and co-founder at ASK Partners, said:
“Today’s rise in UK house prices points to underlying resilience, but momentum remains constrained by affordability pressures and a ‘higher for longer’ interest rate environment. While recent rate cuts signal easing inflation, they are unlikely to materially shift market dynamics in the near term. Mortgage pricing has improved at the margin, yet buyer and developer confidence remains fragile, particularly following a Budget that offered limited direct support for housing.
At the same time, markets are beginning to factor in the potential downstream impact of the Iran conflict. While not yet fully reflected in headline inflation, it is widely expected to exert upward pressure on costs. This uncertainty is already feeding into lending conditions, with close to 1,000 mortgage products reportedly withdrawn since the onset of the conflict, further weighing on buyer activity.
As a result, the market is being shaped more by structural than cyclical forces. The UK’s relative economic resilience, including forecast growth of around 1.4% and sustained interest from Gulf and Southeast Asian capital, is supporting long-term confidence. In the near term, however, demand is shifting towards structurally undersupplied, income-driven sectors, particularly build-to-rent and co-living in well-connected suburban and commuter locations, alongside logistics, data centres and self-storage.
Hamza Behzad, Business Development Director at Finova comments:
“As economic uncertainty lingers and hopes of rate cuts in the near term are starting to fade, it’s encouraging that buyer confidence is holding firm. The average shelf-life of a mortgage fell to eight days in March, underlining just how quickly market conditions are shifting. Buyers may be re-engaging, but they’re doing so with caution, keeping affordability front of mind.
That caution is justified. Upfront costs remain a significant hurdle, with stamp duty changes continuing to stretch budgets, particularly for first-time buyers. At the same time, pressure is building for existing homeowners.
Nearly a million borrowers are set to come off five-year fixed deals this year and those who have already refinanced are paying an average of £94 more a month. It comes at a sensitive moment in the market, just as many homeowners would typically be preparing to bring their properties to market after the winter lull.
Demand is there, but affordability is shaping behaviour on both sides, and the pace of the market will hinge on how well buyers and homeowners adjust to these higher costs in the months ahead.”
