Despite global tensions causing mortgage rates to spike, the latest data illuminates that market activity has exhibited signs of resilience. A large part of this resilience lies in the sturdy performance of the UK property market at the beginning of the year. Demand, price growth, and listings were slowly increasing during this period, reinforced by the expectation that mortgage rates would continue to ease.
Yet even though the current conflict in the Middle East has upended many of the expectations from the start of the year – particularly in relation to mortgage rates – the UK property market holds firm in facilitating consumer activity.
Property Prices
The average price for newly listed properties, according to Rightmove, has increased from £371,042 in March to £373,971 in April, which represents a 0.8% increase month-on-month.
Although this is behind the long-term April average rise of 1.2%, a noteworthy increase has been observed from upper-end properties outside of inner London. There has been a 2.4% increase in the average top of the ladder property price, jumping from £672,903 in March to £688,958 in April.
Colleen Babcock, a property expert at Rightmove, noted: ‘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.’
‘[For] most of the market,’ Babcock continued, ‘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.’
London asking prices, however, have been a major exception, with average prices falling 0.1% month-on-month, not to mention down 2.7% from the previous year. Yet Marc von Grundherr, the director of Benham and Reeves, cautioned that ‘London is often one of the last markets to turn,’ elaborating that the capital city is ‘already seeing the early signs of that return, particularly in those areas where pricing remains realistic, and buyers can still see long-term value.’
The difference between the average listing price (£446,000) and the sale agreed price (£366,000) stood at 25.4%, above the 17% long-term average. Furthermore, in the rental sector, the average monthly rent in March 2026 was £1,740, slightly below the average March 2025 figure of £1,737.
Consumer Demand
Exchange completions stood at 190,000 by the third week of March 2026, down 9.5% from 210,000 in the same period of 2025. But it is important to emphasise that the decline is primarily due to the lowered stamp duty thresholds introduced in April 2025, hence the urgent rush by consumers to finalise transactions during the first quarter of 2025.
Property listings increased by 3% year-on-year in the first quarter of 2026, with January 2026 witnessing a 6% increase compared to the same month in 2025. Viewed more broadly, although new property listings are down 1.1% compared to 2025, it is 16.6% higher than the 2017-19 average.
Higher borrowing costs have impeded consumer activity, with the average two-year fixed rate moving up from 4.25% in February to 5.42% in April. On average, this amounts to a £2,940 increase in the annual mortgage repayment.
Matt Smith, a mortgage expert at Rightmove, commented that mortgage lenders ‘are now largely pricing in further Bank of England base rate increases this year rather than cuts,’ but the ‘initial shock appears to have passed, with mortgage rates stabilising over the past couple of weeks, but they remain elevated.’
This mortgage rate elevation has partly contributed towards lowered activity, though not to a significant extent for the short term. For example, the number of agreed sales in April is only 3% behind this time last year, while newly built properties entering the market is 1% behind compared to the previous year.
Moreover, the current daily market activity highlights that demand in April, assessed on the basis of enquiries made to estate agents concerning property sales, is 7% lower compared to last year. Compared with the 65,114 mortgage approvals in February 2025, mortgage approvals in February 2026 slightly dipped to 62,584.
What has assisted in stabilising market activity is that the average earnings are up 3.9% year-on-year to the point that it has exceeded asking prices, down 0.9% compared to the previous year.
Market Resilience
Even though the UK property market is suffering many setbacks, the primary one being the sharp rise in mortgage rates, the market continues to endure. The national performance overall shows positive signs worth emphasising. Demand and listings have waned in April, it is true, but the degree to which they have dropped has not been as severe as some analysts have predicted. In a similar fashion, property prices continue to steadily rise.
