The UK property market is continuing to show signs of resilience, even as rising mortgage rates and global uncertainty create a more challenging backdrop.
Latest data from Rightmove shows that average asking prices across Great Britain rose by 0.8% in the four weeks to mid-April, increasing by £2,929 to £373,971. While this growth is slightly below the long-term seasonal average, it demonstrates that buyer demand remains steady despite ongoing economic pressures.
We are also seeing some of our housebuilders look to do deals right now to avoid build complete stock sitting on their books. This creates a fantastic buying opportunity to pick something up genuinely below market value and they don’t come along all that often.
Confidence Holding
The increase comes at a time when mortgage rates have moved higher, partly driven by global events pushing up energy prices and leading markets to expect interest rates to remain elevated for slightly longer.
However, the data suggests that underlying housing demand remains strong, with many buyers continuing to move forward with purchases as their personal circumstances outweigh wider economic concerns.
Affordability Pressures vs Rising Incomes
Higher borrowing costs are undoubtedly impacting affordability, with average mortgage rates increasing significantly in recent weeks.
That said, there are also some offsetting factors:
- Wage growth has been running ahead of inflation
- House prices have softened slightly compared to last year
- Lending rules have become more flexible, allowing buyers to borrow more
Together, these factors are helping to support activity levels, even in a higher-rate environment.
Supply Increasing — But Transactions Holding Up
One notable trend is the increase in available housing stock.
- The number of homes for sale is now at an 11-year high
- New listings are up compared to recent years
- Yet agreed sales are only slightly behind last year’s levels
This suggests that while choice has improved for buyers, the market is still functioning relatively well.
London Continues to Underperform
London remains a clear outlier.
- Asking prices in the capital fell slightly month-on-month
- Year-on-year, they are down by around 2.7%, the steepest decline in the country
This reflects ongoing challenges in the London market, particularly around affordability and demand for certain property types.
The Impact of Interest Rates
Mortgage rates have risen sharply in recent weeks, with typical two-year fixed rates climbing to over 5.4%.
For buyers, this translates into higher monthly costs, adding pressure to affordability.
Looking ahead, the Bank of England is expected to hold rates steady in the near term, as policymakers assess the impact of global uncertainty and energy price fluctuations.
What This Means for Investors
For property investors, the key takeaway is that the market remains more resilient than headlines might suggest.
Despite:
- Higher borrowing costs
- Global economic uncertainty
- Increased supply
👉 Demand is still holding up.
Success as ever depends on:
- Choosing the right location
- Buying the right type of property
- Managing costs carefully
- Focusing on long-term fundamentals
Final Thought
The UK housing market is proving to be remarkably resilient, even in the face of rising rates and global instability.
But resilience doesn’t mean risk-free.
As conditions tighten, the gap between strong and weak investments becomes more obvious — and investors who focus on quality assets in areas with real demand are far more likely to perform well over time.
