Latest: March property market report

With the first quarter of 2026 drawing to a close, we’re in a good position to assess the health of the property market. February brought improved lending conditions, so did this translate to sales? Rightmove’s latest House Price Index offered insight.

It found wider global uncertainties hadn’t impacted the market. In fact, sentiment was running high, with new sellers asking for £3,023 more in March, when compared to February. This represented a 0.8% asking price increase, with new-to-market homes now advertised for an average of £371,042.

Number of sales agreed signalled confidence

Buyers tempted to the market by March’s attractive mortgage deals found the highest level of homes for sale at this time of year for more than a decade. Such a choice is doing a good job of keeping house prices stable and encouraging movement. Rightmove’s Index also revealed the number of sales agreed in March was 5% ahead of 2024.

Annual house price growth topped 1%

Zoopla’s House Prince Index provided further detail. When comparing March 2025 to March 2026, house prices have increased 1.3%. UK buyers are now paying an average of £270,500 to purchase a property.

Some UK regions experienced stronger value growth than others. Annual prices increased the most in the North West (3.5%). Wales (2.1%) and Scotland (2.6%) also saw above-average growth. Only London and the South East posted a loss – a very modest 0.2% decrease.

There were also discrepancies between house types. In the last year it has been semi-detached homes that have risen the most in value, with a 2.4% annual increase. The next best performer was terraced houses (up 2%), followed by detached homes (up 1.3%). Flats saw their value dip by 1.1%.

Zoopla also commented on the number of sales being agreed. Despite turmoil, it found serious buyers intent on moving, whatever the conditions, were keeping sales achieved at a positive level. It added that purchasers who were less mortgage-rate sensitive will continue to keep the marketing ticking over.

UK rental values held steady

While sales values in the South East levelled, rental costs were a different story. Firstly, the wider UK picture. HomeLet’s latest Rental Index showed rents dropped by just £1 between its last two monitoring periods. UK tenants agreeing a new rental will pay £1,301 a month.

When it comes to the most valuable rent rises, the South East was the strongest performer. Here rents increased 1.2%, with a new monthly average of £1,418. There were more modest rent rises in the South West, the North West, Scotland, and Yorkshire & The Humber. All other UK regions posted a small monthly value decrease.

The private rental market stayed firmly in the spotlight. The 1st May 2026 will see the majority of the Renters’ Rights Act take effect in England. In Scotland, the phased introduction of The Housing (Scotland) Act 2025 is imminent. So far, the prospect of reform hasn’t put property investors off.

Lending to landlords increased

On the contrary. An article published by Property Reporter in March claimed buy-to-let mortgage lending had increased by more than 20% last year. The analysis of Bank of England data found the last quarter of 2025 accounted for £6.7bn of lending to landlords, making it the strongest period.

One consequence of the incoming Renters’ Rights Act is a growing landlord preference for tenants with guarantors. The latest Alto 2026 Agency Trends Report found 11% of the estate and letting agents polled reported a significant rise in guarantor demands. It describes guarantors as a useful  ‘financial buffer’ when there are affordability worries or less-than-perfect references. 

If you would like to know more about your local property market, please get in touch.