CURRENT UK PROPERTY MARKET: INSIGHT FROM THE LATEST NEWS
THE PROPERTY MARKET REMAINS IN A STATE OF MEASURED TRANSITION
According to the Halifax HPI for March 2026, the average UK house price now stands at £299,677 - a modest annual increase of 0.8%, though down 0.5% on the previous month.*
At the same time, March 2026 shows that average rents for new tenancies have risen to £1,311 per calendar month, up 0.8% since February and 1.8% higher than in March 2025.^
Together, this paints a picture of a market that is still moving forward but doing so with greater caution than in previous years.
REGIONAL VARIATIONS TELL DIFFERENT STORIES
One of the most striking features of the current market is the significant differences between regions, with north vs south affordability continuing to impact trends.
The North East continues to perform strongly, with prices rising 5% annually to £184,119, while Scotland recorded annual growth of 4.4%, taking the average to £222,716. The North Wests typical home is now valued at £247,442 after a rise of 3.1%.*
The picture is considerably more subdued in the South. London saw average values fall by 1.2% year-on-year to £536,751, while the South East recorded the steepest decline of all regions, with prices down 1.9% annually to £383,573. Wales posted a more modest increase of 1.6%, bringing the average home value to £230,909.*
In the lettings market, a similar north-south pattern is emerging, though with some notable differences. Scotland continues to lead with 3.6% annual rental growth to £971 per month, and Yorkshire and Humberside saw rents rise 2.8% to £919 per month.^
London, despite remaining by far the most expensive rental market at £2,097 per month, recorded more moderate annual growth of 1.8%. The East of England stands out as the only region where rents are lower than a year ago, having fallen 1% annually to £1,282 per month.^
WHAT THIS MEANS FOR SELLERS
For those looking to sell, the market requires a realistic and well-informed approach. While annual house price growth of 0.8% nationally confirms that values are still moving in a positive direction, the monthly dip of 0.5% in March 2026 is a reminder that momentum has eased as spring begins and global uncertainty remains.*
That said, there are genuine reasons for confidence. UK property transactions in February 2026 saw 102,410 transactions, up 5.6% from January and the highest monthly transaction figure since March 2025.* This indicates that buyers are still active and that well-priced properties are continuing to find buyers. Sellers in the North of England and Scotland are particularly well-placed, where demand remains robust, and price growth is considerably stronger than the national average.
For sellers in London and the South East, where values have declined year-on-year, accurate pricing is more important than ever. Overpricing in a softening market risks an extended time on sale and, ultimately, a lower final price. Working with an experienced agent who understands local conditions will be essential to achieving the best possible outcome, contact your local branch today to see how we can help.
WHAT THIS MEANS FOR BUYERS
For buyers, the current environment presents both opportunity and complexity. The slight softening in house prices in some regions, particularly London and the South East, means that those who have been priced out in recent years may find conditions more accessible than they have been for some time.
However, the mortgage market continues to require careful navigation. New buyer enquiries fell and agreed sales dropped from -9% to -12%*, suggesting that affordability pressures and rate uncertainty are causing some prospective buyers to hold off for now.
The key message for buyers is that preparation is everything. Securing a mortgage agreement in principle, understanding the full cost of purchase, and acting decisively when the right property comes to market are key factors to incorporate into your search.
WHAT IS HAPPENING IN THE LETTINGS MARKET
The lettings market has shown renewed energy in March 2026. UK rents have risen for the first time since October, with the average new tenancy now costing £1,311 per calendar month - a monthly increase of 0.8%. Excluding London, the average UK stands at £1,125 per calendar month, which is 1.6% higher than in March 2025.^
Rents have grown annually across the majority of regions, with only the East of England recording a year-on-year decline of 1% to £1,282 per month.^ For landlords, the return to rental growth after several months of flat figures will be a welcome signal, with most regions continuing to deliver a positive year on year rise in rental income.
Despite the Renters’ Rights Act coming into effect in England from May 1st, the market remains steady but caution remains in light of the incoming legislation. Read our FAQs to learn more about the changes or contact your local branch where we can offer expertise and guidance on how to stay compliant.
WHAT THIS MEANS IN THE COMING MONTHS
Looking ahead, the direction of the market will be shaped by several key factors. Mortgage rate movements will remain central - any reduction in rates would likely release pent-up buyer demand and provide a meaningful boost to transaction volumes. The quarterly house price change of +0.4%* suggests that the underlying market remains resilient, even if the monthly figures show some short-term softening.
In the lettings market, the return of rental growth after several months of flat or declining figures is a positive signal for landlords and suggests that demand fundamentals remain strong. Whether this momentum is sustained will depend on the broader economic picture, including wage growth and the cost of living.
What is clear is that both the sales and lettings markets continue to offer real opportunity - for buyers, sellers, and landlords alike - provided decisions are made with accurate, up-to-date information and the right professional guidance.
Sources:
*Halifax HPI, March 2026
^HomeLet Rental Index March 2026
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