While higher mortgage rates and increased competition among sellers has dampened typical spring growth, the housing market has shown resilience in the face of global uncertainty, Rightmove reports.
Data from the platform shows the average price of a newly listed home increased by 0.8% (+£2,929) this month to £373,971 – below the long-term April average rise of 1.2%. The more subdued growth comes as borrowing costs remain elevated and the number of homes for sale sits at its highest level for this time of year in 11 years.
Despite these pressures, market activity has held up relatively well. Buyer demand in April to date is 7% lower than the same period last year, but broadly in line with trends seen earlier in 2026. The number of sales agreed is just 3% behind last year, while new listings are only 1% lower and remain 13% higher than in 2024.
Price growth has been strongest at the top end of the market, particularly among larger homes where buyers are less reliant on mortgages. Scotland also outperformed, with asking prices rising by 4.3%.
Colleen Babcock, property expert at Rightmove, said: “With mortgage rates remaining elevated due to the war in Iran, it’s not a surprise that price growth is proving strongest in parts of the market less exposed to higher borrowing costs, such as top-of-the-ladder homes, while sectors more exposed to interest rates are seeing slower momentum.
“Across Great Britain, Scotland stands out as an example of resilience, with average prices rising by over 4%. Lower average asking prices and a faster home-buying process continue to support price growth in the Scottish market.
“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.”
Higher borrowing costs have been driven by global instability, with Rightmove’s mortgage tracker showing the average two-year fixed rate has risen to 5.42%, up from 4.25% before the onset of the Middle East conflict. This adds around £235 to a typical monthly mortgage payment.
However, several factors are helping to support activity. Average earnings are up 3.9% year-on-year, outpacing asking prices, which are down 0.9% annually, while recent changes to loan-to-income lending rules mean buyers can typically borrow more. Demand among first-time buyers has also remained relatively robust, down just 6% compared with last year.
Matt Smith, Rightmove’s mortgage expert, said: “At the start of the year there was growing optimism that the base rate would continue to fall, but that picture has shifted following the conflict in Iran. Financial markets are now largely pricing in further Bank of England base rate increases this year rather than cuts, which has fed through into higher mortgage rates compared with earlier in 2026 and this time last year.
“The initial shock appears to have passed, with mortgage rates stabilising over the past couple of weeks, but they remain elevated. The next moves will depend on upcoming UK inflation data and how the Bank of England responds. If policy decisions align with current market expectations, a period of relative stability is more likely than meaningful falls.”
Smith added: “Even if external pressures ease, including improved conditions in the Middle East, history suggests mortgage rates are unlikely to come down quickly, meaning higher borrowing costs are set to remain in place for the foreseeable future.”