House prices jumped in March. Is that momentum sustainable with rates moving again
March gave the housing market a welcome lift. Nationwide said UK house prices rose by 0.9% month on month and 2.2% year on year in March, taking the average price in its index to £277,186. Its regional breakdown also showed Northern Ireland leading Q1 growth at 9.5%, while England recorded 0.9% annual growth, and flats lagged behind detached homes. The report is here: https://www.nationwide.co.uk/media/hpi/reports/uk-house-price-growth-picks-up-in-march
On the surface, that suggests momentum picked up after a softer start to the year. The more difficult question is whether that strength can last through Q2. The answer may depend less on March’s headline and more on what happens to mortgage pricing, affordability, and buyer confidence as the interest rate outlook shifts again.
What changed in the background
The Bank of England held Bank Rate at 3.75% in March. In its official summary, it said conflict in the Middle East had caused a significant increase in global energy and other commodity prices, and that CPI inflation would be higher in the near term as a result of that shock. That summary is here: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2026/march-2026
That backdrop matters because it has altered expectations for future rates. Nationwide’s own commentary pointed to a sharp swing in financial market expectations during March, which helped push up swap rates and fixed mortgage pricing. In simple terms, March’s house price rise came just as the cost of borrowing started to look less comfortable again.
What is happening to mortgage rates
Mortgage rates have already moved. Moneyfacts’ weekly residential mortgage roundup, published on 1 April, said the lowest rates on the market had risen sharply since the start of the Middle East conflict. It listed the lowest homemover two year fixed rate at 60% loan to value at 4.60%, the lowest equivalent remortgage rate at 4.66%, and the cheapest two year fixed rate for a first time buyer with a 10% deposit at 4.94%. That roundup is here: https://moneyfactscompare.co.uk/news/mortgages/best-uk-residential-mortgage-rates-this-week/
That does not mean every borrower will face those exact rates, but it does show how quickly pricing can change when market expectations shift. For buyers and sellers in Q2, affordability may now matter more than a single upbeat house price release.
Is the momentum sustainable
There are still reasons not to dismiss March as a one off. The Bank of England’s February money and credit figures showed net mortgage approvals for house purchase rose to 62,600 from 60,200 in January, while approvals for remortgaging also increased. That release is here: https://www.bankofengland.co.uk/statistics/money-and-credit/2026/february-2026
Even so, higher mortgage pricing could make the market feel more fragile than March’s headline suggests. If borrowing costs remain elevated, some of the recent improvement in affordability could fade, and that may affect both activity and pricing power. A better reading of March may therefore be that demand had not disappeared, rather than that the market had suddenly become robust again. That is an interpretation, but it is consistent with Nationwide’s own caution and with the Bank’s view that the latest inflation shock needs to be monitored closely.
What it means if you are buying or selling in Q2
For buyers, this may still be a market where good homes attract attention, but it is also one where monthly repayments can move quickly. Being prepared, with an agreement in principle and documents ready, could matter more than trying to guess the perfect moment. In areas where price growth has been softer, there may still be room for negotiation.
For sellers, March is encouraging, but probably not a licence to overprice. A realistic asking price and a buyer whose finance is in place may matter more than a strong national monthly figure. That is especially true in a market where regional performance and property type are clearly not moving in the same way.
Practical takeaways
If you are buying, keep a close eye on live mortgage pricing and remember that market conditions may shift faster than monthly house price indices do. If you are selling, base your expectations on your local market and buyer affordability rather than one national number. If you are remortgaging or buying for the first time, advice can help you distinguish between an eye catching headline and the deals you are realistically likely to qualify for.
March was a positive sign, but not a guarantee of a smooth spring market. If you are weighing up a purchase, sale, or remortgage, Altura Mortgage Finance can help you make sense of the moving parts and focus on what is realistic for your own plans.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Think carefully before securing other debts against your home. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Altura Mortgage Finance Limited is authorised and regulated by the Financial Conduct Authority. Firm Registration No: 827849 www.fsa.gov.uk/register/home.
