UK House Price Growth Below Expectations

The Halifax House Price Index showed UK house prices rose 0.4% year-on-year in April 2026, below expectations of a 0.6% increase and following a 0.8% gain in March, marking the softest annual growth in four months. The average UK home price stood at £299,313. On a monthly basis, prices fell 0.1%, in line with expectations and after a 0.5% decline in the previous period. Amanda Bryden, Head of Mortgages at Halifax, said the UK housing market slowed in April as global uncertainty and rising energy prices lifted inflation expectations and borrowing costs, making households more cautious. Still, she noted the market remains relatively resilient, supported by wage growth outpacing house price inflation and the prevalence of fixed-rate mortgages. Regionally, Northern Ireland recorded the strongest annual house price growth at 7.6%, followed by the North East at 4.5% and Scotland at 4.0%, while prices fell in the South East (-2.0%) and London (-1.4%).

The Halifax House Price Index showed UK house prices rose 0.8% year-on-year in March 2026, below the expected 1.5% and down from a revised 1.2% in February, marking the softest annual growth in three months. The average UK home was £299,677. On a monthly basis, prices fell 0.5%, defying expectations of a 0.1% gain and marking the first decline in three months. Amanda Bryden, Head of Mortgages at Halifax, said the slowdown reflects geopolitical uncertainty in the Middle East. Rising energy prices have fueled higher inflation expectations, pushing mortgage rates up and weakening confidence that interest rates will be cut this year, which has dampened early-year market momentum. In regional terms, southern markets lagged, with the South East down 1.9% and London falling 1.2%. Wales saw modest growth (+1.6%), followed by the North West (+3.1%) and Scotland (+4.4%), while the North East (+5%) and Northern Ireland (+8.7%) recorded the strongest gains.

The Halifax House Price Index showed UK house prices rose 1.3% year-on-year in February 2026, more than the expected 0.9% gain, from a revised 1.1% increase in January, marking the strongest annual growth in four months. The average UK home reached a new high of £301,151. On a monthly basis, prices rose 0.3%, following a 0.8% gain in January. Amanda Bryden, Head of Mortgages at Halifax, said the market maintained early-year momentum, with prices up around £3,000 since January. Affordability remains stretched and supply constrained, but easing interest rates and real wage growth are supporting buyers. Regional growth was led by Northern Ireland (6.3%) and Scotland (4.7%), followed by Wales (2.4%) and northern England, including the North East (3.5%) and North West (2.9%). Southern markets lagged, with the South East down 2.2% and London falling 1%. Halifax noted mortgage approvals and geopolitical uncertainties may affect borrowing costs and future price growth.