UK House Prices Decline in March Amid Market Uncertainty
Average UK house prices edged down in March, marking the first monthly fall of 2026. Halifax’s index shows a 0.5% drop after gains of 0.8% in January and 0.3% in February. The average price in March stood at £299,677.
Market context and drivers
Annual house price growth also cooled. Halifax recorded annual growth of 0.8% in March, down from 1.2% in February. Analysts linked the slowdown to market uncertainty and higher inflation expectations.
Halifax’s head of mortgages, Amanda Bryden, said geopolitical tensions in the Middle East lifted energy-price worries. That pushed up inflation expectations and lifted mortgage rates. Higher borrowing costs in turn dented confidence about cuts to interest rates this year.
Regional performance
Growth varied sharply across the UK. Northern Ireland and Scotland posted the strongest annual gains.
| Region | Average price | Annual change |
|---|---|---|
| East Midlands | £333,455 | -0.6% |
| Eastern England | £246,636 | +0.5% |
| London | £536,751 | -1.2% |
| North East | £184,119 | +5.0% |
| North West | £247,442 | +3.1% |
| Northern Ireland | £224,809 | +8.7% |
| Scotland | £222,716 | +4.4% |
| South East | £383,573 | -1.9% |
| South West | £301,859 | -0.6% |
| Wales | £230,909 | +1.6% |
| West Midlands | £265,126 | +1.7% |
| Yorkshire and the Humber | £217,704 | +1.2% |
Regional highlights
Northern Ireland led the country with an 8.7% annual rise. Scotland followed with a 4.4% increase. The North East and North West showed stronger growth within England.
Industry reaction and outlook
Experts warned that higher mortgage rates will temper demand. Tom Bill of Knight Frank said rate adjustments will be gradual. He expects price momentum to remain subdued this year.
Karen Noye at Quilter noted borrowing cost shifts rarely affect prices immediately. She said future price trends depend on the conflict’s path. She urged borrowers with maturing deals to consider fixing rates early for certainty.
Propertymark’s chief Nathan Emerson pointed to an early-year uplift in viewings. He said many sub-4% mortgage deals had been withdrawn recently. That reflects lenders adjusting to fresh economic uncertainty.
Estate agents highlighted ongoing buyer activity. Antony Roberts’ head of sales reported serious buyers remain active. The Guild of Property Professionals said sales agreed are broadly stable.
What this means for buyers and sellers
- UK house prices have shown a slight decline in March amid market uncertainty.
- Regional performance varies; some areas continue to see strong annual gains.
- Mortgage rate moves and geopolitical risk will shape market momentum.
Filmogaz.com analysis of Halifax data shows the market faces a cautious near-term outlook. Buyers and sellers should monitor mortgage rates and geopolitical developments closely.
