The housing market has made a steady start to March with asking prices rising modestly despite growing global uncertainty and a surge in the number of homes for sale.
The average asking price of newly listed property increased by 0.8% (+£3,023) this month to £371,042, according to the latest data from Rightmove.
The rise is in line with typical seasonal trends, but the pace of growth remains subdued compared with the stronger markets seen in the past two years.
A key factor holding back price growth is supply, with the number of homes on the market now at its highest level for this time of year in more than a decade.
REALITIC PRICING
The elevated level of choice for buyers is forcing sellers to be more realistic on pricing, while competition between listings has pushed the average time to secure a buyer to its longest March level since 2013.
Market activity has remained relatively resilient so far, even with fresh geopolitical uncertainty linked to the Iran war.
The number of sales being agreed is currently just 2% behind the same point last year and 5% ahead of 2024, while new listings are only 3% lower than last year and 7% higher than two years ago.
Buyer demand was already running below last year’s levels, but has not fallen further since the latest global tensions emerged.
AFFORDABILITY CONCERNS
Affordability continues to be the main driver of activity, with clear regional differences across the UK. Lower-priced areas including the North of England, Scotland and Wales are seeing stronger annual price growth, while London and the South are weaker.
Starter homes have seen a small annual fall in asking prices, potentially opening a window for first-time buyers, while larger properties remain broadly flat.
Mortgage rates are also starting to edge higher again, reflecting the impact of global instability. Rightmove’s tracker shows the average two-year fixed rate has risen to 4.51%, up from 4.24% a week earlier, underlining how sensitive borrowing costs remain to inflation expectations and geopolitical risk.
PLENTY OF CHOICE
Colleen Babcock (main picture, inset), Property Expert at Rightmove, says: “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.
“With the number of homes for sale at its highest level for over a decade, buyers have plenty of choice, and sellers need to be competitive from the outset if they want to secure a buyer.”
RATE UNCERTAINTY
Matt Smith, Rightmove’s mortgage expert, says: “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, has meant that lenders’ fixed rate pricing needs to change to reflect the Bank Rate remaining flat for longer.”
INDUSTRY REACTION
Nathan Emerson, CEO of Propertymark, says: “Consumers are generally in a far stronger position to purchase a property than they were a year ago, mainly due to serval 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 affordably.
“Across the last 12 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 seller alike to complete on their transaction.”
CAUTIOUS OPTIMISIM
Adam Horton, Founder of Hortons Estate Agency, says: “Spring has arrived with what I’d describe as cautious optimism in the property market.
“Buyer activity appears to have picked up, but with supply still relatively high, new sellers need to be disciplined on pricing from day one – overpriced stock is simply being overlooked. Price sensitivity among buyers is heightened, and the agents seeing the best results are those having honest conversations about market positioning.
“On the geopolitical situation in the Middle East, we haven’t yet seen any measurable impact on buyer or seller behaviour. That said, the longer-term effects will depend heavily on the duration of the conflict and its knock-on impact on the cost of living. If it feeds through into higher energy costs or renewed pressure on interest rates, that will be felt in household budgets and ultimately in buying power.
“One area worth watching closely is oil-heated properties. Unlike gas, that market is unregulated and sits outside the government’s price cap, so sellers of those homes could face a meaningful reduction in buyer appetite if running costs become a concern.”
SEASONAL UPLIFT
Daniel Lewis, Managing Director at FreeAgent247, says: “The start of March has brought the usual seasonal uplift in seller activity, with more homes coming to market as we move into the spring moving season.
“While listing prices are edging up modestly, sellers need to remain realistic and price competitively, particularly given the higher levels of available stock compared to recent years. Buyers now have greater choice, which naturally increases the importance of accurate pricing from the outset.
“Although it is still too early to fully assess whether wider geopolitical tensions, such as the Iran war, will influence home-moving decisions, the market has so far shown resilience.
“Demand remains steady where pricing aligns with buyer expectations, suggesting that well-presented and sensibly priced homes are still attracting strong interest as the spring market gathers momentum.”
HOPE SPRINGS ETERNAL
Jeremy Leaf, north London estate agent and a former RICS Residential Chairman, says: “Despite inevitable worries that the present geopolitical uncertainty will increase upward pressure on inflation and mortgage payments, we have seen no price reductions or withdrawals from agreed sales in our offices other than for property-related reasons.
“Most buyers are obviously nervous about the impact of the conflict but are adopting a ‘wait-and-see’ stance for now at least.
“These figures from Rightmove reflect asking prices rather than sales values and determine whether genuine buyers are attracted so may take a little longer to reflect any change in sentiment.
“Sellers should know confidence takes a long time to build but can disappear quite quickly and the market continues to be price-sensitive, bearing in mind particularly high stock levels.
“However, sellers and buyers will be hoping the Bank of England keeps interest rates unchanged this week and that activity will shortly resume the steady improvement seen at the beginning of 2026.”
CHALLENGING CONDITIONS
Tom Bill, Head of UK Residential Research at Knight Frank, says: “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 downwards 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.”
