UK House Prices Fall 0.5% in March as Iran War Inflation Fears Push Mortgage Rates Higher

UK house prices fell by 0.5% in March, reversing a 0.3% rise the previous month.

“Average UK house prices fell by 0”

BBC

The average property price slipped back below £300,000 to £299,677.

BBC

Amanda Bryden said the slowdown reflects wide uncertainty over the conflict in the Middle East.

Concerns about higher energy prices pushed up inflation expectations, leading to a rise in mortgage rates.

The average two-year fixed mortgage rate moved upwards to 5.84%.

The closure of the Strait of Hormuz threatened 20% of global oil shipments.

Surging Brent crude prices added to inflation fears.

Hundreds of the cheapest mortgage deals disappeared over the last few weeks.

The biggest daily withdrawal of deals since the mini-Budget in 2022.

Business Live

Property prices continued to slump in London, down 1.2% in the year to March.

There was no immediate improvement in mortgage rates following the ceasefire.

Experts remain split over the prolonged threat to the property market.

Halifax's results diverged from competitor Nationwide.

“UK house prices fell in March, as the housing market lost momentum amid uncertainty over the conflict in the Middle East and the impact on the economy and interest rates”

The Guardian

Economists had projected a 0.1% increase.

Halifax noted house price growth of 0.8% compared with March 2025.

This was below the 1.5% growth that had been expected.

Diverging signals complicate the picture of Britain's housing market.