31 March 2026
If you are covering March’s Nationwide House Price Index, please find comments below from Karen Noye, mortgage expert at Quilter:
“Nationwide’s latest house price index reveals modest movement in March, with house prices rising by 0.9% over the month and 2.2% annually, bringing the average UK house price to £277,186.
“Today’s figures capture the early stages of the repricing that has taken place in mortgage markets since the start of the Iranian conflict. While some resilience in house prices appears to have remained for now, momentum will likely soften in the months ahead as higher mortgage rates and increased economic uncertainty weigh on buyer confidence.
“Expectations of easing borrowing costs and gradually improving affordability had been supporting activity at the start of the year, but any real progress has been rapidly undone in the last month. Since the start of the conflict, mortgage rates have risen sharply and lenders have been withdrawing products or repricing fixed rate deals at short notice. For prospective home buyers and movers, this has meant a rapid deterioration in affordability.
“First time buyers are likely to feel this most acutely, given their sensitivity to changes in rates and stress testing, but it also risks dampening activity further up the chain as existing homeowners delay moving plans in the face of higher borrowing costs. The full effect of higher borrowing costs, weaker confidence and tighter household budgets will take time to feed through, but we can expect the housing market to be stuck in a holding pattern unless anything changes soon.
“For those with mortgages due to renew later this year, it is vital to act early. Securing a new deal as soon as possible can provide certainty at a time when rates are moving quickly, and borrowers are usually able to amend or switch to a cheaper option if pricing improves before their existing deal ends.”
