Pause in the UK real estate market
Real estate prices in the United Kingdom in March did not change on an annual basis, according to data from the Office for National Statistics (ONS).
For comparison, in February prices rose 1.7% year‑over‑year.
In monthly terms, apartment prices in March fell by 0,4%, compared to a 1.2% increase recorded in the same period a year earlier.
“This occurred before changes to the Stamp Duty Land Tax in England and Northern Ireland, which came into force in April 2025,” the report said.
ONS data show that March property prices were not favorable for buyers in Northern Ireland, where they rose by 7,4%.
On the other side, London saw rates fall by 2,1%.
Despite market difficulties, including high mortgage rates and economic and political uncertainty, the average property price in March was 268,000 GBP, the same as a year ago.
Source: Bloomberg.
Data also indicate that since the US and Israel attack on Iran in early February, financing costs for British borrowers have surged.
According to Moneyfacts, the average fixed rate for two‑year mortgages rose to 5,73%.
This represents an increase of 0.9 percentage points compared to the end of February, the period immediately preceding the escalation of the Middle East conflict.
Source: Bloomberg.
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Bloomberg reminds that with the ongoing Middle East conflict, pressure on the UK real estate market is increasing.
According to expert forecasts, the situation is expected to worsen, partly due to a lack of breakthrough in the tense relations between Washington and Tehran.
Households in the United Kingdom are now under pressure from high energy prices, which are occurring during a political crisis linked to the potential resignation of Keir Starmer from the premiership.
Britons, dissatisfied with the Labour Party leader’s policy, are calling for a change in leadership, which could negatively affect market demand.
We wrote more about this in the article: British pound weakens. Starmer loses power, new UK prime minister’s name announced?
Read also: Market turbulence. Home seekers “should know this” – experts say
See also: Real estate no longer declines. 40,000 sales contracts were cancelled in the month, apartments linger on the market for 60 days
Source: Office for National Statistics, Bloomberg.
