“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.”
“With mortgage rates fluctuating due to global affairs, along with lower economic uncertainty due to the Labour government, we are seeing a lower number of transactions but only slightly down compared with this time last year,” added Tomer Aboody, director at specialist lender MT Finance.
“With buyers having more options as more homes come to market, prices are still buoyant although rising at a much slower pace. Buyers are slowly realising that the days of virtually ‘free money’ are long gone, and that current rates are actually more or less in line with historical averages, give or take 100 basis points.”
On demand, Rightmove’s snapshot of daily activity showed enquiries to estate agents in April to date were 7% lower than the same period in 2025. It said the comparison was complicated by the timing of Easter and last year’s expiry of temporary stamp duty discounts, and noted early indications in the past week of firmer demand that could be influenced by the holiday calendar. Rightmove said it was too soon to judge the full impact of the conflict in Iran on activity.
The company also pointed to factors supporting affordability. Annual earnings growth was running at 3.9%, while asking prices were 0.9% lower than a year earlier. It added that typical borrowing capacity had improved following last year’s review of the loan-to-income cap and the Financial Conduct Authority’s reminder to lenders on stress-testing flexibility. First-time buyer demand was described as the most resilient segment, down 6%.