Data released today by Rightmove shows that the average asking price of a new listed home has increased by 0.8% (+£2,929) this month to £373,971 – which is below the long-term April average increase of 1.2%. The more subdued growth reflects increased borrowing costs and higher levels of supply, with the number of homes for sale the highest this time of year in more than a decade.
Despite these market forces, activity has remained relatively resilient. Buyer demand since April is down 7% compared to the same period last year, but broadly in line with trends seen earlier in 2026. The number of agreed sales is just 3% behind last year, while new listings are down just 1% and still 13% higher than in 2024.
Rightmove: Market ‘surprisingly resilient’ despite mortgage rate rise
Industry response:
Tom Bill, head of UK residential research at Knight Frank: “The fact that mortgage offers last for several months means that rising borrowing costs have not yet fully passed through to buyers. The seasonal increase in activity, combined with the fact that supply has fallen more than demand in response to the Middle East conflict, has maintained upward pressure on prices and prevented a hard upside moment for the housing market.
“However, the inflationary shock of higher energy prices will put upward pressure on rates and keep house prices under control for several months. We expect there will be little impact on transaction levels.”
Benham & Reeves director Mark von Grundher: “London has been fairly balanced at the start of the year and as is often the case, the capital is taking a little longer to react to improving conditions than many other areas of the market.
“The combination of increased geopolitical uncertainty and rising mortgage rates has caused some buyers to think hard, especially in the upper end of the market where affordability is already stretched. However, what we have seen is not a decline in confidence, but rather a more cautious and thoughtful approach on the part of both buyers and sellers.
“There are still plenty of reasons for optimism. Wage growth is outpacing house price inflation, lending criteria have improved and, while mortgage rates have moved higher in recent weeks, they remain below where many buyers expected them at the start of the year.
“London is often one of the last markets to make the shift, but when momentum starts to build it does so strongly. We are already seeing early signs of that comeback, particularly in areas where pricing remains realistic and buyers can still see long-term value.”
Mark Wiggin, Director of Mark Wiggin Estate Agents: “There’s no doubt that buyer confidence has declined following the global events of the past few weeks, but deals are still being made and people are still on the move. What really matters right now is price. Homes need to reflect today’s market, not last year’s, and there’s a big difference between staying on the market and just sitting on it.
“Buyers start with three things: price, photos, and how long the home has been listed. If it’s been on the market for more than a few months, buyers immediately assume it’s overpriced. In this market, sellers have to respond to that feedback – the market always tells you when the price isn’t right.”
Polly Ogden Duffy, Managing Director of John D Wood & Company: “With the arrival of spring, pricing has become more important than ever. With the increased supply of homes – particularly flats coming from 2025 onwards – buyers have more choice and are less inclined to commit to overpriced properties, meaning sellers who price too ambitiously risk losing serious, move-able buyers.
“In contrast, the family housing market continues to perform strongly, particularly in areas with sought-after schools, where demand can still exceed supply and, in some cases, multiple bids come in.
“Although mortgage rates are broadly in line with the same time last year, tensions in the Middle East are weighing on confidence in the short term. In London, the market remains resilient, with competition for family homes continuing despite global uncertainty.
Peter Ryder, Managing Director of Thorntons Property Services: “The property market in the East of Scotland and Inverness is showing resilience despite wider economic uncertainty. The increased stock levels are giving buyers more choice and reducing the intense competition of recent years, helping to create a more balanced and sustainable market.
“Well-priced, well-presented homes are still attracting strong interest, and activity is being driven by genuine housing needs rather than speculation, which provides stability for both buyers and sellers.”