At the official end of the first quarter of 2026 on 31 March, it wasn’t yet clear what the full impact of the Iran War and the energy crisis it had ignited would be on the UK housing market.
But now, with April comparatives revealed, a truer picture has been drawn of the state of the sector – and it’s not as bad as expected.
Inflation may have risen – up to 3.3% in the twelve months to March 2026 – and interest rate cuts may be off the table again after the Bank of England held the base rate at 3.75% once again in April, but house prices and buyer demand seem to be holding their nerve.
Market resilience is good news
The resilience the figures appear to illustrate is good news for buyers and sellers. Many of the March indexes had carried warnings that the figures had yet to take into account the impact of the Middle East crisis and so gave little real indication of the first quarter overall.
And yet house prices have stood up to the pressure and continued to rise, signalling consumers continuing willingness to invest. In March, Nationwide’s house price index showed UK annual house price growth of 2.2% to £278,880, up from 1% in February. By April, this had increased to 3%, with even Nationwide admitting it was surprised by the market’s resilience.
Meanwhile, Rightmove reported average new seller asking prices up by 0.8% in both March and April. These figures were despite mortgage rates rising due to the uncertainty caused by the war in Iran.
The number of properties available for sale in March remained at its highest level in 11 years, with an average of 59 properties per agent across the UK, indicating that sellers are still coming to market.
This, in turn, continues to attract buyers who are putting their housing needs above marginal shifts in mortgage rates. This time last year, the comparatives were strong, with buyers rushing to complete before stamp duty increases came into force in April.
According to Rightmove, demand was down only 7% this April compared to the same period last year, while the number of agreed sales was only 3% lower.
A sustained confidence
There is little doubt that there will be more economic pain to come, with inflation expected to be further impacted in the coming months as the energy price crisis feeds through to consumer spending. Further interest rate cuts are now likely to be on hold, which will put more pressure on their pockets. But the first quarter results so far, and the early updates since then, point to a sustained confidence rather than a knee-jerk market exodus.
And, if the conflict is soon brought to an end and energy prices begin to stabilise, the UK housing market could yet deliver a few more surprises.
Proctors is an independent network of individual estate agent businesses with branches in Beckenham, Bromley, Park Langley, Petts Wood, Shirley and West Wickham. We’ve been buying, selling and letting in these areas since 1946. Get in touch to find out how we can help you with your property requirements.