Housing market remains resilient despite higher mortgage rates: Rightmove

The housing market has so far remained steady in 2026, despite mortgage rates rising fast in recent weeks due to the uncertainty caused by the war in Iran, the latest Rightmove data shows.

The average price of newly listed homes for sale has risen by 0.8% this month to £373,971, a slightly more muted increase than the long-term average of 1.2% for April. 

While spring usually brings stronger price growth, higher mortgage rates due to global uncertainty are limiting buyers’ spending power and keeping new seller pricing cautious. 

However, with the number of homes for sale at an eleven-year high and buyers having more choice than in any April over the past decade, competition between sellers remains intense.

Rightmove notes that activity trends are difficult to accurately compare with this time last year, as different Easter dates and last year’s ending of temporary stamp duty discounts are affecting year-on-year comparisons. 

Its latest real-time snapshot of daily market activity shows that buyer demand in April to date, measured by enquiries to estate agents about homes for sale, is 7% down compared to the same period in 2025. While demand is lower than last year, this is a continuation of the trend, with March and February also 7% lower in demand for the same period last year, which was a particularly strong market as buyers tried to complete purchases before stamp duty rose.

Additionally, the last seven days have shown some early positive signs of new buyer demand accelerating beyond last year, though this may be partially caused by the timings of the Easter holidays, and Rightmove says it is still too early to assess the full impact of the war in Iran. 

While the unexpected headwinds of mortgage rate rises dent the buoyant start to 2026, there are tailwinds keeping the market moving. Although yearly wage growth has slowed, average earnings are still up by 3.9% annually, outpacing asking prices which are down 0.9% year-on-year. A typical mover is also now able to borrow more, due to last year’s review of the loan-to-income cap and reminder to lenders about stress testing flexibility by the FCA. 

Despite rate rises usually weighing most heavily on more mortgage-dependant first-time buyers, demand has so far proven most resilient in this group (-6%). This suggests higher mortgage rates are not putting off many new potential first-time buyers from enquiring, at least for now. 

The number of sales agreed for April to date so far this year is also showing resilience, currently just 3% behind this time last year. In addition, the number of homes newly coming to market is only 1% behind last year, and 13% higher than in 2024, showing that many new sellers are not currently deterred.

Colleen Babcock, property expert at Rightmove, commented: “With mortgage rates remaining elevated due to the war in Iran, it’s not a surprise that price growth is proving strongest in parts of the market less exposed to higher borrowing costs. Across Great Britain, Scotland stands out as an example of resilience, with average prices rising by over 4%.

“Lower average asking prices and a faster home-buying process continue to support price growth in the Scottish market. However, for most of the market, the combination of rising mortgage rates and the number of homes for sale being at its highest level for the time of year over a decade, means that competitive pricing is crucial for sellers looking to attract buyer interest and secure a sale this spring.

“Some buyers will be feeling cautious due to cost of living and mortgage rate increases. However, the latest data shows that, at least for now, home-movers are largely showing their usual resilience with their housing needs trumping other events. While higher mortgage rates negatively affect affordability, many buyers are also benefiting from rising wages, lower house prices and more flexible borrowing criteria than in recent years, which all help affordability.”

Jeremy Leaf, north London estate agent and former RICS residential chairman, added: “There’s no question war in the Middle East has had an impact on property market activity with hostilities continuing but not as severe as feared.
 
“Although the Rightmove data reflects asking, rather than achieved, prices, steeper reductions might have been an early warning of tougher times ahead bearing in mind worries over affordability and especially mortgage rates.
 
“However, in our offices the negative effects have also been relatively limited to date with the overwhelming majority of sales proceeding as well as new listings and buyer enquiries steady. On the other hand, the amount of choice of some property means prices remain flat and transaction times are lengthening. We have been involved in some fairly intense negotiations too with existing as well as new buyers and sellers trying to factor in anticipated increases in costs.
 
“Looking forward, we don’t expect much to change at least until the beginning of the end of the uncertainty is in sight although even then, the after effects will inevitably linger.”