UK House Price Index Update: May 2026

UK House Price Index March 2026: House Prices Slip as Market Slows

The latest UK House Price Index for March 2026 shows the housing market losing some momentum, with average house prices falling slightly month-on-month and annual growth flattening.

Average UK house prices fell by 0.4% between February and March 2026, while annual growth slowed to 0.0%, leaving the average UK property value at £268,000.

While this does not point to a market crash, it does reinforce the shift towards a more price-sensitive and balanced market in 2026.

UK house prices flatten in March

The latest figures suggest the market is cooling after modest growth earlier in the year.

• Average UK house price: £268,000

• Monthly change: -0.4%

• Annual change: 0.0%

This marks a notable slowdown from February, when annual growth stood at 1.7%.

Transaction levels remain relatively stable month-on-month, but significantly lower than the same period last year.

England house prices

In England, prices also softened during March.

• Average price: £290,000

• Monthly change: -0.5%

• Annual change: -0.6%

This means England has now moved into negative annual growth territory, reflecting affordability pressures and cautious buyer behaviour.

Regional house price trends

The March 2026 figures highlight how uneven the UK housing market has become, with affordability continuing to shape buyer demand.

The East Midlands was the strongest-performing English region, recording annual growth of 0.7% and a monthly increase of 0.3%. More affordable house prices compared with southern England, combined with continued buyer demand for family homes, appear to be supporting prices in the region.

London remained the weakest-performing market, with annual prices down 2.1%. Higher borrowing costs continue to affect affordability in the capital more heavily than other regions, particularly for flats and first-time buyer properties.

The West Midlands saw the largest monthly decline at -1.6%, while the North East and North West also recorded annual price falls despite stronger performance earlier in the year.

Across southern England, prices were largely flat or slightly negative, with the South East and South West both seeing annual declines of 0.8%.

Meanwhile, Wales continued to outperform much of England, with annual growth reaching 2.9%. Lower average property prices and continued demand for larger homes appear to be helping support the Welsh market in 2026.

London market remains under pressure

London’s housing market continues to show weaker performance than the national average.

• Average London property price: £542,000

• Monthly change: -0.3%

• Annual change: -2.1%

Flat prices in London were down -5.5% annually, while detached and semi-detached homes continued to see modest growth.

This reinforces the ongoing divide between higher-value urban markets and more affordable regional areas.

Transactions remain below 2025 levels

The UK Property Transactions Statistics showed:

• Estimated transactions in March 2026: 104,000

• Monthly transaction change: +1.3%

• Annual transaction change: -40.9%

While activity increased slightly from February, transaction levels remain significantly below March 2025. This reflects a market where buyers are still active, but more selective and cautious about pricing.

What this means for buyers and sellers

March’s figures reinforce the idea that 2026 is becoming a highly regional and price-sensitive market.

For sellers, accurate pricing and strong presentation remain critical. Homes that are realistically priced are still attracting buyers, but overpriced listings are struggling.

For buyers, slower growth and weaker annual performance in some regions may create more room for negotiation, particularly in London and flat markets.

The strongest-performing areas continue to be locations where affordability, space and lifestyle remain attractive relative to local incomes.

The outlook for the rest of 2026

Although annual growth has now flattened nationally, the market remains relatively stable rather than volatile.

Mortgage affordability has improved compared to previous years, but buyers remain cautious and focused on value. Regional differences are also becoming more pronounced, with some areas continuing to grow while others soften.

As always with HPI data, it is important not to overreact to a single month’s figures. The market in 2026 continues to look more balanced than boom-driven.

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