The Halifax House Price Index reported that UK house prices rose by 0.8% year-on-year in March 2026, undershooting both market expectations of 1.5% and February’s revised 1.2% increase. This was the weakest annual growth rate in three months. The average UK property value stood at £299,677.
On a monthly basis, prices declined by 0.5%, contrary to forecasts of a 0.1% rise, marking the first monthly fall in three months.
Amanda Bryden, Head of Mortgages at Halifax, said the slowdown reflects heightened geopolitical uncertainty in the Middle East. Rising energy prices have lifted inflation expectations, pushing mortgage rates higher and eroding confidence that interest rates will be cut this year, which has in turn slowed the strong momentum seen at the start of the year.
Regionally, southern markets underperformed, with prices in the South East down 1.9% and London falling 1.2%. Wales recorded modest growth of 1.6%, followed by the North West at 3.1% and Scotland at 4.4%. The strongest gains were in the North East, up 5.0%, and Northern Ireland, up 8.7%.
