UK house prices rise 2.2% in March as market regains momentum

A fragile rebound lifts UK home values, but will global instability derail the market's shaky progress? London leads gains while some regions lag.

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2026 April 7 . 2:01 PM

1 min read

The image shows a row of terraced houses on a street in London, with windows, doors, railings,... — The image shows a row of terraced houses on a street in London, with windows, doors, railings, plants in pots, a metal fence, a street pole, a group of trees, and a cloudy sky.

UK house prices rise 2.2% in March as market regains momentum

UK house prices climbed by 2.2 per cent in March compared to the same month last year. The rise marks a stronger pace of growth, suggesting the property market has regained some momentum. However, economic uncertainties could still affect future trends. In March, house prices increased by 0.9 per cent from the previous month. London saw a notable jump of 1.7 per cent over the year, bringing the average property price in the capital to £538,181. Yet not all regions followed this trend—Outer South East and East Anglia experienced small declines of 0.7 and 0.4 per cent respectively.

The number of residential transactions also showed mixed signals. February's figures rose by six per cent compared to January, but last month's sales remained six per cent lower than the same period in 2023. Analysts warn that rising global energy prices and geopolitical tensions, such as the Iran conflict, could disrupt the market's recovery. Despite these challenges, the recent uptick in prices indicates a partial rebound. The latest data reflects cautious optimism among buyers and sellers, though external economic pressures may yet slow progress.

The property market has shown signs of recovery with rising prices and increased transactions in early 2024. However, ongoing global instability and energy cost shocks pose risks to sustained growth. Observers will watch closely to see if the current momentum holds in the coming months.