Welcome to the Proplytics Homebuyer Monthly. Your data-led briefing on what's moving in the UK housing market.
March was a month of mixed signals for UK homebuyers. Headline prices continued to climb, but the ground shifted beneath the mortgage market in ways that will shape affordability for months to come. Here is what the data tells us.
House Prices Picked Up, But the Picture is Uneven
According to the latest figures, UK house prices rose 0.9% month-on-month in March, bringing the average home to £277,186. Annual growth accelerated to 2.2%, up from just 1.0% in February. That is the strongest annual reading since late 2024.
However, the gains are not spread evenly. Northern Ireland led the charge with 9.5% annual growth, while the North West saw a 3.3% rise. Southern England continues to lag, though the pace of price falls there has eased in recent months. If you are buying in a region where prices are moving fast, tools like Homebuyer Pro can help you track local pricing trends and assess whether the asking price stacks up against comparable sales.
Mortgage Rates Surged as Global Events Hit Home
The biggest story of March was the sharp rise in mortgage costs. The conflict in the Middle East, which began in late February, sent shockwaves through financial markets. Swap rates surged, and lenders responded quickly. The average five-year fixed rate climbed from 4.95% at the start of March to 5.52% by the end of the month. Two-year fixes moved in a similar direction, now averaging around 5.56%.
More than 200 mortgage products were pulled from the market in a matter of days. For first-time buyers, the impact was immediate. Average monthly repayments on a typical two-year fixed deal rose from £975 in February to £1,038 in March. That is an extra £756 a year before accounting for any further increases.
The Bank of England held the base rate at 3.75% in March, dashing hopes of a cut that many had anticipated. If inflationary pressures persist, there is even talk of a potential rate rise.
Buyer Confidence Wobbled
It is not surprising that buyer sentiment softened. Enquiries are down across all regions compared to this time last year, with the sharpest falls in the North East and West Midlands. Around 6% more homes are on the market than a year ago, which gives buyers more choice but also signals that some sellers are testing the waters ahead of potential further uncertainty.
Sales agreed are still holding up among committed movers, but the pool of active buyers is thinning. For those still in the market, this is a moment to be thorough with due diligence. A Homebuyer Insight report can give you an independent, data-backed view of a property before you commit.
Government Pushes Ahead on Housing Supply
On the supply side, the government announced plans for seven new towns, each expected to deliver at least 10,000 homes. A £165 million Growth and Housing Accelerator Fund was also launched to unblock stalled developments. Housing starts rose 23% in the final quarter of 2025 compared to the previous quarter, though completions remain at their lowest since 2014.
New planning reforms also give central government the power to determine housing applications for developments of 150 homes or more. Whether this translates into faster delivery on the ground remains to be seen, but the direction of travel is clear.
What This Means for Homebuyers
March 2026 reinforced a key theme. The UK housing market is being shaped by forces well beyond supply and demand. Geopolitical events, interest rate expectations, and government policy are all playing a role.
For buyers, the practical takeaway is this. Do your homework. Understand what a property is truly worth in the context of your local market, stress-test your budget against higher mortgage rates, and do not rush a decision because of short-term price movements.
Whether you are just starting your search or ready to make an offer, Homebuyer Insight (£99) gives you the essential data you need to buy with confidence. For a deeper dive including planning risk, price modelling, and local market analysis, Homebuyer Pro (£199) is designed to give you every advantage.
Until next month, stay informed and buy smart.
The Proplytics Team