## Modest Increase in Asking Prices as Spring Market Begins

Average asking prices for newly listed homes in the UK rose by 0.8% in March 2026, increasing by £3,023 to £371,042, according to Rightmove. This uplift follows a relatively flat February and aligns with typical seasonal trends, as March usually brings a boost in asking prices. Despite this rise, the pace of house price growth remains modest and close to the long-term average.

## Record High Supply Limits Price Growth

The number of homes available for sale has reached an 11-year high, giving buyers a wider selection of properties. This increased supply is contributing to longer selling times, with the average time to secure a buyer now the longest recorded for this stage of the year since 2013. Rightmove’s property expert Colleen Babcock commented, “Many sellers are facing stiff competition and the longest average time to sell at this time of year since 2013.”

Babcock emphasised the importance for sellers to be competitive from the outset when setting asking prices. She noted, “Relying on later price reductions is a much tougher and less effective strategy when buyers are very price sensitive and have so many alternatives to choose from.” For landlords considering selling, this suggests pricing properties realistically at the start to attract genuine interest.

## Sales Activity and Market Demand

Rightmove’s data shows that the number of sales agreed in March 2026 was 2% lower than the same period last year but 5% higher than in 2024. New supply entering the market followed a similar pattern, being 3% below last year but 7% higher than in 2024. Buyer demand had been running below last year’s levels prior to the Iran conflict and has not declined further since.

## Regional Variations in Price Movements

Lower-priced regions are experiencing stronger annual growth in asking prices, with the North West recording a 2.6% increase over the past year. In contrast, London saw a 2.1% fall in asking prices. Smaller homes with zero to two bedrooms have seen a slight decrease of 0.4% in asking prices over the year, while mid-market “second-stepper” homes rose by 0.6%. The largest homes at the top end of the market showed no annual change.

Mortgage costs are also rising, with Rightmove’s daily mortgage tracker reporting the average two-year fixed mortgage rate increasing to 4.51%, up from 4.24% the previous week. This may influence affordability and buyer behaviour, particularly in higher-priced regions.

## Industry Perspectives on Market Conditions

Nathan Emerson, CEO of Propertymark, highlighted that consumers are generally in a stronger position to purchase compared to a year ago, thanks to successive base rate cuts and lower inflation. He noted an encouraging start to the year with resilient sales and viewings.

Tomer Aboody, director of specialist lender MT Finance, pointed out that the abundance of stock is keeping prices in check, which benefits those looking to move. He also observed a north-south divide, with price growth more muted in the expensive south due to challenges buyers face in raising deposits and meeting lender income requirements.

Jeremy Leaf, a north London estate agent and former RICS residential chairman, remarked that despite geopolitical uncertainties, there have been no significant price reductions or withdrawals from agreed sales except for property-related reasons. He noted that buyers are adopting a cautious “wait-and-see” approach, and that asking prices may take longer to reflect changes in sentiment as they represent seller expectations rather than actual sales values.

## What This Means for Landlords and Agents

For UK landlords and letting agents, the current market conditions suggest a balanced environment where pricing strategy is crucial. With high supply and longer selling times, setting competitive asking prices from the outset is essential to attract buyers. Regional variations highlight the importance of local market knowledge, especially in areas like London where prices have softened. Additionally, rising mortgage rates could impact tenant demand and affordability, factors landlords should monitor closely.

Suggested internal link anchors
– average asking prices
– spring selling season
– homes for sale
– time to sell property
– sales agreed
– regional house price growth
– mortgage rates
– property market trends
– buyer demand
– pricing strategy for landlords
– property supply levels
– market conditions for landlords

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/