Market holds steady despite global tensions but rates edge higher

The housing market has remained stable through March but rising mortgage rates and growing global uncertainty are beginning to put pressure on buyer affordability.

According to the latest Rightmove data average asking prices increased by 0.8% (+£3,023) this month to £371,042, a typical seasonal rise as the spring market gets underway.

However, the increase comes against a backdrop of elevated supply, with the number of homes for sale at an eleven-year high for this time of year, limiting stronger price growth.

The higher level of stock is creating a more competitive market for sellers, while buyers remain highly price-sensitive.

The time taken to secure a purchaser is now the longest for March since 2013, highlighting the impact of increased choice and stretched affordability.

GEOPOLITICAL UNCERTAINTY

Despite fresh geopolitical uncertainty linked to the Iran war, transaction activity has so far held up. The number of sales being agreed is running just 2% behind the same point last year and remains ahead of 2024 levels, while new listings are only slightly below last year but comfortably above two years ago.

Buyer demand was already weaker than in 2025 but has not fallen further since the latest global tensions began.

Affordability remains the key driver of activity, with clear regional variation. Lower-priced markets in the North of England, Scotland and Wales continue to see stronger price growth, while more expensive southern regions remain subdued.

FIRST-TIME BUYERS

Asking prices for typical first-time buyer homes have edged down slightly over the past year, while larger properties are broadly flat.

Mortgage pricing has begun to react to the changing global outlook. Rightmove’s daily tracker shows the average two-year fixed rate has risen to 4.51%, up from 4.24% a week earlier, as lenders respond to increased uncertainty around inflation and financial markets.

“Uncertainty is never helpful for market activity.”

Colleen Babcock (main picture, inset), says: “Market activity remains stable so far in March which is encouraging given the new global uncertainty over the last few weeks, though it’s too early to tell what may happen later down the line.

“That said, uncertainty is never helpful for market activity, and it’s come at a time when confidence and optimism would usually be building as the spring market gets underway.

“It’s understandable that many potential buyers may have one eye on news about mortgage rates and wider household costs.

“For context, the average monthly mortgage payment on a new purchase has increased by around £45 so far, but is still around £70 lower than it would have been at this time last year.”