House Prices Fall 0.5% in March 2026

Halifax March 2026 Data

UK house prices reversed course in March, with Halifax reporting a 0.5% monthly decline — the first fall since late 2025. The drop follows a 0.3% rise in February and ends the early-year momentum that had pushed prices to record levels.

The average UK property now stands at £299,677, slipping below the £300,000 mark. Annual growth has also cooled, falling to 0.8% from 1.2% in February. For context on what a mortgage at this level costs, see our £300k mortgage repayments guide.

Regional Breakdown: North Still Leading

The familiar north-south divide continues to define the UK housing market in 2026:

• Northern Ireland: +8.7% annual growth — average price £224,809
• Scotland: +4.4% — average £222,716
• North East England: +5.0% — average £184,119
• North West England: +3.1% — average £247,442
• Wales: +1.6% — average £230,909
• South East England: −1.9% — average £383,573
• London: −1.2% — average £536,751

For buyers exploring the most affordable areas to buy, northern regions continue to offer better value and stronger price momentum.

What Halifax Says

Amanda Bryden, head of mortgages at Halifax, said: "The recent slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East."

She added: "Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year."

On the outlook, Bryden noted: "The recent increase in UK mortgage rates has been more modest than the sharp rises seen during the mini-budget of 2022. Many households will already be on fixed deals, protecting them from the latest rate rises. Taking all this into account, house prices may prove resilient, even if uncertainty weighs on market activity in the near term."

Industry Reaction

Propertymark chief executive Nathan Emerson warned: "We are at an important intersection where we must clearly acknowledge future challenges ahead. A lot has changed in a short space of time, with numerous sub-4% mortgage deals being withdrawn over the last few weeks."

For more on the disappearance of competitive deals, read our guide on sub-4% mortgages drying up.

Matty Stevens, mortgage expert at The Mortgage Genie, added: "March is the first full month in which the conflict in Iran fed through into UK mortgage pricing. Buyers need to act quickly — getting an agreement in principle locked in now protects you if rates move further. We're advising all our clients to check their options before the next round of repricing."

What This Means for Buyers

For prospective buyers, the March data signals a market pause rather than a crash. Prices remain close to record highs, and underlying demand — supported by real wage growth — hasn't disappeared.

However, with lenders raising mortgage rates and pulling deals at short notice, getting a mortgage agreement in principle before rates move further is more important than ever.

Before applying, check your free credit report and understand your loan-to-value position.

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