UK Property Market Trends

The UK property market enters spring 2026 in its strongest position in three years. Average house prices have risen 3.8% year-on-year to reach £298,000, driven by a combination of stabilised mortgage rates, pent-up demand from first-time buyers, and limited new housing supply. Transaction volumes are up 12% compared to March 2025, signalling renewed confidence across most regions.

Regional disparities remain pronounced. London continues to lag behind the national average in price growth at just 2.1%, while cities such as Manchester (+7.2%), Birmingham (+6.8%), and Leeds (+6.4%) are outperforming. The East and West Midlands continue to offer the best value for buyers, with average days to sell falling below the national average of 28 days. The North West stands out with the fastest average sale time of just 24 days, driven by strong demand in Manchester and Liverpool.

Looking ahead, the Bank of England's anticipated rate cut in Q2 2026 could further stimulate demand. However, affordability remains a constraint in the South East, where the asking-to-sold price gap of -2.1% suggests buyers retain negotiating power. We expect continued moderate growth through H1 2026, with the rental market also tightening as landlord supply continues to contract in the face of higher regulatory requirements.