UK house prices pick up in March
By Abigail Townsend
Date: Tuesday 31 Mar 2026
(Sharecast News) - UK house prices picked up in March, industry data showed on Tuesday, as the market regained momentum following a sluggish end to 2025.
According to the latest house price index from Nationwide, prices rose by a better-than-expected 0.9% in March, adding to February's 0.3% uplift. The average house price now stands at £277,186.
The UK housing market faltered as 2025 came to the close, weighed down by the long run-up to the later-than-usual November budget and the traditionally quiet month of December.
The new year saw conditions rebound, in large part due to expectations the Bank of England would continue cutting interest rates in 2026. The first cut was expected at the Monetary Policy Committee's March meeting.
However, the US attacks on Iran and the subsequent outbreak of war in the Middle East saw the MPC leave the cost of borrowing on hold. It also confirmed it was ready to tackle any uplift in inflation.
Robert Gardner, Nationwide's chief economist, said: "The sharp rise in global energy prices in response to developments in the Middle East represents a significant shock to the global economy, clouding the outlook.
"In the near term, UK economic growth is likely to be slower and inflation higher than previously expected, although ultimately the impact will depend on the duration of the shock as well as the policy response.
"The outlook for interest rates is particularly uncertain."
Markets are now pricing in three interest rises this year, in stark contrast to the two price cuts forecast ahead of the US attacks.
"This shift has resulted in a sharp rise in swap rates that underpin fixed rate mortgage pricing," Gardner noted. "If sustained, this could reverse some of the improvement in housing affordability that has taken place in recent years."
On an annual basis, houses prices grew by 2.2% in March.
Matt Swannell, chief economic advisor to the EY Item Club, said: "There were tentative signs that the housing market was starting to pick up in March, but these are now likely to prove fleeting. While we think the recent re-pricing in financial markets is overdone, it seems likely that the MPC will leave rates unchanged for a sustained period of time, weighing on housing demand."
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