UK house prices stagnate as headwinds intensify
According to the latest House Price Index, UK house prices stagnated in the year to 31 March 2026, with most English regions suffering a decrease. In contrast, prices rose by more than 1% in Scotland, Northern Ireland, and Wales.
The average house price in the UK remained static year on year at £268,000, with England’s average house price dropping 0.6% to £290,000 in the year.
Adrian Benosiglio, National Real Estate and Construction Corporate Tax Lead at RSM UK, comments: “Today’s figures are yet another indicator of the urgent need for government support to help restimulate the UK housing market. The onset of the Iran war and subsequent economic impact marks a significant blow to a sector already facing numerous headwinds, including high levels of taxation, tight regulation, and UK economic volatility, with average house prices declining across many UK regions.
“Despite the official Bank of England base rate decreasing over the last year, mortgage rates are on the rise, significantly increasing borrowing costs for buyers and those remortgaging. This has delivered a concerning blow to market demand, as affordability and purchasing power becomes more constrained.
“The ongoing conflict in the Middle East, paired with broader economic uncertainty and continued political instability in the UK mean that the trend of subdued house price growth is likely to persist in the months ahead. Measures such as planning and tax reforms or further support for first time buyers could help to alleviate some of the challenges faced by the sector as it navigates a challenging economic backdrop in the months ahead.”