UK House Prices Rise for Fifth Consecutive Month as Mortgage Rates Fall

UK house prices rose by 0.8% in March 2026, according to the latest data from the UK's largest mortgage lender, marking the fifth consecutive monthly increase and confirming that the housing market has entered a sustained recovery phase.

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The Numbers

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The average UK property now costs £294,000 — up from a post-correction low of £278,000 in early 2024. Annual house price growth now stands at 3.2%, its highest rate since 2022.

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Mortgage approvals in February hit their highest level since before the rate shock of 2022-23, as falling base rates make monthly payments more affordable. The typical first-time buyer is now putting down a deposit of £47,000 and facing monthly payments of £1,340 on a 25-year repayment mortgage.

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Regional Picture

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London continues to lag the national trend, with annual growth of just 1.8%. The strongest growth is in the East Midlands and Yorkshire, where prices are rising at 4-5% annually from a more affordable base.

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Outlook

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Most forecasters now expect house prices to rise 4-6% nationally in 2026, with affordability constraints limiting the pace of recovery. The supply of homes for sale remains below historical norms, providing underlying support for prices.

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