UK house prices saw a renewed uplift in March, signalling a recovery in buyer activity after a slower start to the year. Data from Nationwide shows annual growth strengthening to 2.2%, alongside a significant monthly increase. However, rising global energy costs and shifting interest rate expectations are beginning to influence the outlook for the months ahead.
- Annual house price growth up from 1% in February
- Average UK house price increased by 0.9% month on month to £277,186
- Market momentum improved following a slowdown at the start of the year
- Financial markets shifted from expecting rate cuts to pricing in three rate hikes over the next 12 months
- Rising energy prices are expected to increase inflation and slow economic growth
- Northern Ireland recorded the strongest annual growth at 9.5%, while some southern regions saw slight declines
Original article source: Mortgage Introducer.
The rebound in March house prices points to a market that remains responsive, even against a more uncertain economic backdrop. After a softer start to the year, buyer activity has picked up again, suggesting that underlying demand is still present when conditions feel more stable.
External pressures, such as rising energy costs, have driven the shift in interest rate expectations, making it an important factor. While the trend may influence affordability in the near term, it also reflects a market adjusting to new information rather than weakening fundamentally. These types of resets are typical in established property markets and tend to moderate activity rather than disrupt it.
Crucially, the foundations remain steady. With the majority of borrowers on fixed-rate mortgages, the immediate impact of higher rates is limited. This helps support pricing and prevents sharp volatility, allowing the market to move through periods of uncertainty in a more controlled way.
Regional trends continue to highlight where opportunity sits. Stronger growth in areas such as Northern Ireland and parts of the North reflects ongoing demand for relative value, while more modest performance in southern regions points to a market that is rebalancing rather than declining. At the same time, the weaker performance of flats – particularly in urban centres – may present selective opportunities for longer-term buyers.
The result is a market finding its footing again, but within a more measured environment. For investors, that typically creates better conditions for decision-making, with less urgency and more room to identify value.
