The UK housing market has stagnated, with zero growth recorded across the property landscape and prices falling in England. Fresh data from the House Price Index report reveals that a property is roughly worth the same today as it was a year ago, projecting zero per cent growth in the sector with the average house price remaining static at £268,000.
The annual growth recorded for March 2026 offers a grim prediction, suggesting that amid continued strain on the global economy from the Middle East crisis, the market's resilience to international pressures may be starting to wane. Monthly house values have also taken a tumble, with the average price tag in March falling 0.4 per cent from February.
Previously strong-performing English regions, such as the North East and North West, have seen prices drop. Last month's House Price Index report covering February showed homeowners in the North West and the North East had enjoyed price rises over the past year of 3.4 per cent and 3.6 per cent, respectively. However, both regions recorded losses for March, with North East prices plunging 1.2 per cent to an average of £161,629, while North West prices fell 0.8 per cent to around £214,678.
Regional Disparities and Exceptions
Analysis from estate agents Purplebricks brought more bad news for London and the South of England, with the value of homes in the UK capital falling by 2.1 per cent, while values dropped 0.8 per cent in the South East and South West. Properties in the South East now average £378,515, and homes in the South West are worth around £300,849. Average house prices across England saw an annual price drop of 0.6 per cent, putting the average property at £289,946.
Scotland and Wales are exceptions to the trend across England, with prices rising 1.6 per cent and 2.9 per cent respectively, according to data released by the Office for National Statistics. The average Scottish property now costs £186,582, while the average Welsh home comes with a price tag of £213,240.
Pockets of Growth
Despite the dismal picture, pockets of the UK bucked the trend, particularly in the Home Counties and commuter towns around the capital, as Londoners attempt to escape to the country. East Hertfordshire homes now average £456,251 after a £21,738 price boost over the 12 months to March. Properties in the Vale of White Horse, in Oxfordshire, are worth roughly £413,205 following a £19,916 annual price bump. In Mid Sussex, homes are today worth £189,542 after a £17,473 rise.
London suffered significant losses over the year, with only eight of the 32 boroughs seeing positive price performances. The top-performing borough was Waltham Forest, where homes average £528,353 following an annual £16,304 rise. Bottom of the list was the City of London, where homes recorded yet another six-figure plunge worth £151,016, making the average property now worth £594,961. Homes in Westminster were also hammered with a six-figure loss, with £107,111 wiped off prices, making average homes worth £844,095. Properties in Kensington and Chelsea shed £101,277 over the year, pricing the average home at £1.26 million.
Expert Outlook
Tom Evans, Sales Director at Purplebricks Estate Agency, said: "While this isn't the outcome homeowners wanted, a slow-down in house prices is not surprising - but we are confident this is a blip rather than a trend. The economy's unexpected 0.6 per cent growth for the first quarter of 2026, and with lenders continuing to cut fixed-rate mortgage deals, we're confident the long-term outlook is a positive one. Despite Labour bigwigs battling over who will be in No 10, as far as homeowners should be concerned, things can only get better."
