UK House Prices Decline in March
House prices in the United Kingdom fell by 0.5% in March, bringing the average property value to £299,677, according to data published by Halifax on Wednesday.
This drop follows a 0.3% increase recorded in February, signaling a shift in short-term momentum within the housing market.
Annual Growth Slows Amid Market Uncertainty
On an annual basis, house price growth slowed to 0.8%, down from 1.2% the previous month.
Amanda Bryden, Head of Mortgages at Halifax, explained that the slowdown is largely driven by uncertainty surrounding the Middle East conflict. Rising concerns over energy costs have increased inflation expectations, which in turn has pushed mortgage rates higher. As a result, confidence in potential interest rate cuts later this year has weakened.
Regional Growth Remains Strong in the North
Despite the broader slowdown, several regions continue to show solid growth.
Northern Ireland remains the strongest performer, with house prices rising 8.7% year-on-year to an average of £224,809. Scotland also recorded steady growth, with prices increasing 4.4% annually to £222,716.
In England, the North East saw a 5% annual increase, bringing average prices to £184,119, while the North West recorded growth of 3.1%, with average property values reaching £247,442.
Southern Markets Experience Declines
In contrast, southern regions showed signs of weakness.
The South East recorded the largest annual drop, with prices falling 1.9% to £383,573. London also experienced a decline, with average property values decreasing 1.2% to £536,751.
Housing Activity Picks Up
Despite softer price growth, housing market activity showed improvement.
UK home sales increased in February, with seasonally adjusted residential transactions reaching 102,410. This represents a 5.6% rise compared to January’s total of 96,940 and marks the highest monthly figure since March 2025.
Mortgage Approvals Rise
Mortgage approvals also moved higher, indicating continued buyer interest.
According to the Bank of England, the number of mortgages approved for house purchases increased by 3.9% in February, reaching 62,584.
