At the beginning of 2026, buyer confidence had picked up, driven by demand that had been tempered in the last quarter of 2025 as buyers and sellers awaited details of the autumn budget. With the end of rumours and the certainty of detail, buyers returned. It looked like it was going to be a good year for the housing market.
And then the Iran war hit, impacting economies across the world and denting the confidence of a housing market that was only just finding its feet again.
Resilient house prices
Yet, with most of the April house price indexes now in, we can see a fuller picture of the impact on the first quarter and the early weeks that have followed since the end of March. The figures show that despite the conflict in the Middle East, the energy crisis that has followed and inflation rising to 3.3% in the twelve months to March 2026, the market seems to have been more resilient than many had expected, both in terms of house prices and buyer activity.
In most of their March indexes, companies had warned that the figures had yet to reflect the fuller picture of the impact of the sharp rise in global energy prices as a result of the Middle East conflict.
In March, Nationwide reported UK annual house price growth of 2.2% in March to £278,880, up from 1% in February. Yet in its April figures, it reported that this had increased to 3%, with its chief economist Robert Gardner calling the continued growth “somewhat surprising” given that indicators of consumer confidence had weakened noticeably. He said the market was likely supported by the strength of household finances and improving mortgage affordability in general – despite recent rate increases.
Rightmove, meanwhile, reported average new seller asking prices up 0.8% in March, revealing the following month that these had held steady at 0.8% again in April despite mortgage rates rising. The number of properties available for sale in March remained at its highest level in 11 years, underscoring the importance of correct pricing for sales to proceed.
Is it still the right time to sell or buy?
The next quarter might show a greater an impact on consumer confidence to buy. The March inflation rise was inevitable and led the Bank of England to hold the base rate at 3.75% for another month in April. It also largely dashed the expectation of any imminent cuts.
But market comparatives are also set against a strong 2025. Rightmove pointed out that the market this time last year was filled with buyers rushing to complete before stamp duty prices rose and said that demand was only 7% down in April compared to the same period in 2025, while the number of agreed sales is only 3% lower.
It believes the initial shock has passed. Meanwhile, more widely, the market hopes that if the conflict is resolved and energy prices also begin to normalise, the UK housing market may not be impacted as badly as originally predicted.
For more information on how we can assist you on your salesjourney, please contact one of our branches in Essex, London or Hertfordshire today. We also offer a free and instant online valuation to give you an idea of how much your home could be worth on the current market.
