House prices dip in March as annual growth remains static: UK HPI

UK house prices were static in the year to March 2026, down from growth of 1.7% in the 12 months to February, the latest UK House Price Index from the Land Registry shows.

On a monthly basis, house prices fell by 0.4% between February and March, compared with a increase 1.2% from the same period 12 months ago.

In England, the data shows prices fell by 0.5% over the month, with an annual price fall of 0.6% taking the average property value to £290,000.

The East Midlands experienced the largest monthly increase with a movement of 0.3% and also saw the greatest annual price rise, up by 0.7%.

London saw the lowest annual price growth, falling by 2.1%.

Jason Tebb, president of OnTheMarket, commented: “Property values were flat on an annual basis in April, with the average price unchanged from a year ago. Given all that has happened in the past 12 months, this resilience is quite remarkable, with prices kept in check by increased stock, more choice and continued affordability concerns.

"Average prices conceal significant regional differences, with values in London continuing to contract by the greatest margin with a 2.1% fall in the 12 months to March. This is mainly due to greater supply of stock and continued stretched affordability with prices considerably higher than other parts of the country.

"Needs-based buyers are ploughing on with their transactions, while uncertainty created by the Middle East conflict is resulting in less-committed buyers adopting a more cautious ‘wait and see’ stance. Lenders continue to trim their mortgage rates, but there is still plenty of volatility in swap rates, which influences mortgage pricing. While inflation dipped to 2.8% in the year to April, given the ongoing conflict in Iran this downwards trend is unlikely to be sustained and is tempering market expectations of further base-rate reductions in the near future at least.”

Nicky Stevenson, managing director at Fine & Country, said: “It is worth keeping perspective about this cooldown in house price growth, as a slight adjustment was always likely considering the rise in living costs. 

“The market can be uneven month to month, and spring activity doesn’t always translate into immediate price gains, particularly in a more price-sensitive environment.

“March has been a month of mixed signals across the wider housing picture. We’ve seen evidence that buyers are motivated, as mortgage approvals edged up again, but many households are still weighing affordability carefully. That can temper how far prices can move in the short term.

“A modest cooling now isn’t necessarily a negative. It can help keep the market moving by supporting affordability and giving buyers confidence that they won’t be overpaying. In practice, it often encourages sensible deal-making and helps chains come together as we head deeper into spring.

“The underlying message remains that committed buyers are active, they’re simply being more selective and making sure they don’t sign up to a mortgage they can’t keep up with. Sellers who stay close to local conditions and price for today’s market are still well placed to achieve a good outcome.”

Tomer Aboody, director of MT Finance, added: “No increase in average property values over the past 12 months illustrates the tough market conditions we are facing. Lack of affordability is the overriding concern for many, particularly first-time buyers and those purchasing in the southeast and London.

“Lack of encouragement of any form from the government has fuelled hesitation in both buyers and sellers with many pausing and taking a ‘wait and see’ approach. With further reductions in base rate on hold at least for now, and more stamp duty paid due to the lack of any concessions this year, there is little incentive to make a move unless you really have to. Despite recent reductions in pricing, mortgage rates are higher than this time last year, so needs-based buyers who still have to move are taking on higher loan-to-values in order to be able to buy."