Data released today by Rightmove shows the average asking price of a newly listed home rose by 0.8% (+£2,929) this month to £373,971 – below the long-term April average increase of 1.2%. The more muted growth reflects elevated borrowing costs and a high level of supply, with the number of homes for sale at its highest for this time of year in more than a decade.

Despite these market forces, activity has remained relatively resilient. Buyer demand in April to date is 7% lower than the same period last year, but broadly in line with trends seen earlier in 2026. The number of sales agreed is just 3% behind last year, while new listings are only 1% lower and still 13% higher than in 2024.

Rightmove: market ‘surprisingly resilient’ despite mortgage rate rises

Industry reaction: 

Tom Bill, head of UK residential research at Knight Frank: “The fact mortgage offers last for several months means the spike in borrowing costs has not fully kicked in yet for buyers. A seasonal increase in activity, combined with the fact that supply fell more notably than demand in response to the Middle East conflict, has kept upwards pressure on prices and prevented a cliff edge moment for the housing market. 

“However, the inflationary shock of higher energy prices will put upwards pressure on rates and keep house prices in check for several months. We expect there will be a smaller impact on transaction levels.”

Marc von Grundherr, director of Benham and Reeves: “London has remained fairly measured over the start of this year and as is often the case, the capital is taking a little longer than many other areas of the market to respond to improving conditions. 

“The combination of heightened geopolitical uncertainty and the increase in mortgage rates has understandably caused some buyers to pause for thought, particularly across the higher end of the market where affordability is already stretched. However, what we’ve seen is not a collapse in confidence, but a more cautious and considered approach from both buyers and sellers.

“There are still plenty of reasons for optimism. Wage growth continues to outpace house price inflation, lending criteria have improved and, while mortgage rates have edged higher in recent weeks, they remain below where many buyers expected them to be at the start of the year.

“London is often one of the last markets to turn, but when momentum does begin to build it tends to do so strongly. We’re already seeing the early signs of that return, particularly in those areas where pricing remains realistic and buyers can still see long-term value.”

Mark Wiggin, director of Mark Wiggin Estate Agents: “There’s no question buyer confidence has taken a knock after the global events of the past few weeks, but deals are still getting done and people are still moving. What really matters right now is price. Homes need to reflect today’s market, not last year’s, and there’s a big difference between being in the market and just sitting on it. 

“Buyers start with three things: the price, the photos and how long a home’s been listed. If something’s been on the market for more than a few months, buyers immediately assume it’s overpriced. In this market, sellers must respond to that feedback – the market always tells you when the price isn’t right.”

Polly Ogden Duffy, managing director at John D Wood & Co: “With the arrival of spring, pricing has become more critical than ever. With an increased supply of homes – particularly flats lingering from 2025 – buyers have more choice and are less inclined to engage with overpriced properties, meaning sellers who price too ambitiously risk missing out on serious, proceedable buyers. 

“In contrast, the family housing market is continuing to perform strongly, especially in areas with sought after schools, where demand can still outstrip supply and, in some cases, result in multiple bids.

“While mortgage rates are broadly in line with this time last year, tensions in the Middle East are weighing on confidence in the short term. In London, the market has remained resilient, with competition for family homes continuing despite global uncertainty.

Peter Ryder, managing director at Thorntons Property Services: “The property market across the East of Scotland and Inverness continues to show resilience despite wider economic uncertainty. Increased stock levels are giving buyers more choice and easing the intense competition of recent years, helping create a more balanced and sustainable market.

“Well‑priced, well‑presented homes are still attracting strong interest, and activity is being driven by genuine housing needs rather than speculation, providing stability for both buyers and sellers.”