"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"
- Colleen Babcock - Rightmove
Average new seller asking prices rose 0.8% in April to £373,971, a more modest increase than the long-term April average of 1.2%, as higher mortgage rates and an abundance of homes for sale continue to hold back price growth in the UK housing market this spring, according to Rightmove data out this morning.
The number of homes available is at an eleven-year high for the time of year, meaning buyers have more choice than at any point in the past decade. That increased competition among sellers is keeping pricing cautious, even as the market continues to show resilience in the face of rising borrowing costs.
Price growth this month has been driven largely by top-of-the-ladder properties with four or more bedrooms, where buyers are more likely to be discretionary movers or cash purchasers, and therefore less exposed to higher mortgage costs.
Scotland has been the strongest regional performer, with average asking prices up 4.3%. Lower average prices, reduced mortgage dependency, and a faster buying process have all supported stronger growth north of the border.
"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," said Colleen Babcock, property expert at Rightmove.
"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."
Activity holds up despite headwinds
Comparing activity against this time last year is complicated by differing Easter dates and the end of temporary stamp duty discounts in 2025, both of which distort year-on-year figures. Even so, Rightmove's real-time data shows that new buyer demand in April to date, measured by enquiries to estate agents, is running 7% below the same period in 2025.
That gap mirrors the trends seen in February and March, when demand was also 7% lower than the equivalent period last year, a year when buyers were rushing to complete before stamp duty thresholds changed.
The last seven days have shown some early signs of demand accelerating beyond last year's pace, though the Easter timing may be a partial factor, and the full impact of the Iran conflict is still playing out. Next month should provide a clearer picture.
Despite the headwinds, there are supports keeping the market moving. Annual wage growth has slowed, but average earnings remain 3.9% higher than a year ago, outpacing asking prices, which are down 0.9% year-on-year.
Buyers are also able to borrow more than before, following last year's review of the Loan-To-Income cap and updated guidance on stress testing flexibility from the Financial Conduct Authority.
First-time buyers, who tend to be the most mortgage-dependent, have shown the strongest demand resilience of any group, with enquiries down just 6%. That suggests higher rates are not yet deterring significant numbers of prospective first-time buyers from at least beginning the process.
Sales agreed for April are also holding up, currently just 3% behind this time last year, while the number of homes newly coming to market is only 1% below last year's level and 13% higher than in 2024.
"Some buyers will be feeling cautious due to cost-of-living and mortgage rate increases," Babcock said.
"However, the latest data shows that, at least for now, home-movers are largely showing their usual resilience, with their housing needs trumping other events. While higher mortgage rates negatively affect affordability, many buyers are also benefiting from rising wages, lower house prices and more flexible borrowing criteria than in recent years, which all help affordability.
"Rightmove's whole of market real-time data highlights that while some metrics are understandably slightly down, the overall market currently remains resilient."
What's happening with mortgage rates?
Rightmove's daily mortgage tracker shows the average two-year fixed rate has climbed to 5.42%, up from 4.25% before the conflict in Iran began. That increase adds around £235 a month to a typical new mortgage.
"At the start of the year, there was growing optimism that Base Rate would continue to fall, but that picture has shifted following the conflict in Iran," said Matt Smith, Rightmove's mortgage expert.
"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. 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."
London cautious but showing early signs of recovery
"London has remained fairly measured over the start of this year, and as is often the case, the capital is taking a little longer than many other areas of the market to respond to improving conditions," said Marc von Grundherr, director of Benham and Reeves.
"The combination of heightened geopolitical uncertainty and the increase in mortgage rates has understandably caused some buyers to pause for thought, particularly across the higher end of the market where affordability is already stretched."
"However, what we've seen is not a collapse in confidence, but a more cautious and considered approach from both buyers and sellers. There are still plenty of reasons for optimism. Wage growth continues to outpace house price inflation, lending criteria have improved, and while mortgage rates have edged higher in recent weeks, they remain below where many buyers expected them to be at the start of the year."
"London is often one of the last markets to turn, but when momentum does begin to build, it tends to do so strongly. We're already seeing the early signs of that return, particularly in those areas where pricing remains realistic, and buyers can still see long-term value."
Tom Bill, head of UK residential research at Knight Frank, pointed to a structural factor cushioning the market in the short term. "The fact that mortgage offers last for several months means the spike in borrowing costs has not fully kicked in yet for buyers," he said.
"A seasonal increase in activity, combined with the fact that supply fell more notably than demand in response to the Middle East conflict, has kept pressure on prices upwards and prevented a cliff-edge moment for the housing market. However, the inflationary shock of higher energy prices will put pressure on rates upwards and keep house prices in check for several months. We expect there will be a smaller impact on transaction levels."
