Kings Estate Agents - March 2026 Property Market Update

March has brought a renewed sense of momentum to the UK property market, with prices rising and activity increasing as we move into the busy spring season. However, ongoing economic uncertainty—particularly around interest rates and global events—means the outlook remains mixed. In this update, we break down what’s happening in the market right now and what it means if you’re thinking of buying or selling.

Spring Boost, But Modest Growth
March saw a noticeable uplift in property prices, largely driven by seasonal demand. Average asking prices increased by 0.8% (+£3,023) to around £371,000 Nationwide reported a 0.9% monthly rise, the fastest in nearly 18 months

Annual price growth has now reached approximately 2.2% While this is encouraging, it’s important to note that growth remains steady rather than dramatic, reflecting a more balanced market compared to previous years.

Supply & Demand: More Choice for Buyers
One of the biggest shifts in 2026 so far is the increase in available properties: Stock levels are at their highest for this time of year in over a decade
New listings are ahead of 2025 levels and significantly higher than pre-pandemic averages
For buyers, this means more choice and less competition, while sellers must be more strategic on pricing and presentation.

Mortgage Rates: A Key Challenge
Mortgage affordability remains one of the biggest factors shaping the market: Average fixed mortgage rates are now above 5.4%
Some lenders have withdrawn or repriced deals due to economic uncertainty
Rising borrowing costs are making buyers more cautious, which is why realistic pricing is more important than ever for sellers.

Buyer Behaviour: More Measured, More Selective Compared to the fast-paced markets of previous years, buyers in 2026 are: Taking longer to make decisions, negotiating more on price, prioritising value and energy efficiency
Demand is still there—but it’s more considered and price-sensitive.

Economic Outlook: Uncertainty Ahead
While March’s figures are positive, the wider economic backdrop is less predictable: Inflation pressures are rising again Interest rate cuts are now less certain
Global events are impacting confidence and borrowing costs
Some analysts are already suggesting that current growth could be a “calm before the storm” if borrowing costs continue to increase

What This Means for Sellers
If you're thinking of selling in 2026:
Buyer demand is still active
Spring is traditionally the strongest time to sell
Pricing correctly is critical in a more competitive market
Homes that are well-presented and realistically priced are still achieving strong results.

What This Means for Buyers
For buyers, conditions are improving:
More properties to choose from
Greater negotiating power
Higher mortgage costs to factor in
Preparation is key—having finances in place puts you in a strong position when the right property comes up.

Our Outlook for 2026 Most forecasts suggest modest house price growth of around 1.5%–4% across the year The market is expected to remain: Stable but sensitive to interest rates
Regionally varied (with stronger growth in more affordable areas)
Increasingly dependent on realistic pricing