The number of homes for sale are at an 11-year high for this time of year, pointing to a more favourable market for potential buyers, Rightmove data shows.
The average price of newly listed homes for sale rose by 0.8% (+£3,023) in March to £371,042, a typical seasonal increase following the unusual flat month in February.
Colleen Babcock, property expert at Rightmove, said: “March has brought a typical seasonal lift in prices, and ‘steady rather than strong’ is how I’d describe the start of this year’s spring market.
“With the number of homes for sale at its highest level for over a decade, buyers have plenty of choice. Many sellers are facing stiff competition and the longest average time to sell at this time of year since 2013.
“In this kind of market, being not only competitive on price, but competitive from the outset when setting an asking price for your home is critical. Our research shows that 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.”
As it stands the number of sales being agreed is only 2% behind the strong market of this time last year, and 5% ahead of 2024.
This suggests that home-movers are continuing with deals despite headlines about potential mortgage rate rises and increases to fuel and energy costs.
The lower priced North of England, Scotland and Wales are seeing stronger annual price growth than the more expensive southern England, with the North West leading the way with a 2.6% annual increase in prices compared to London’s 2.1% fall.
Meanwhile, smaller 0-2 bedroom properties, which are typical starter homes, have fallen in price by a national average of 0.4% over the last year.
Babcock added: “Market activity remains stable so far in March which is encouraging given the new global uncertainty over the last few weeks, though it’s too early to tell what may happen later down the line.
“That said, uncertainty is never helpful for market activity, and it’s come at a time when confidence and optimism would usually be building as the spring market gets underway.
“It’s understandable that many potential buyers may have one eye on news about mortgage rates and wider household costs. For context, the average monthly mortgage payment on a new purchase has increased by around £45 so far, but is still around £70 lower than it would have been at this time last year.”
Tomer Aboody, director of specialist lender MT Finance, said: “Plenty of stock, in line with the time of year, is keeping prices in check to an extent, which is good news for those who are keen to move.
“The north-south divide illustrates how important affordability is when it comes to people’s ability to move house. In the more expensive south, price growth is more muted as buyers face more of a struggle in raising the necessary deposit and demonstrating enough income to satisfy lenders.
“Everyone has one eye on the Middle East conflict, which could have an impact on inflation and therefore interest rates. Whereas market expectations were for at least one further rate cut in base rate this year, with inflation likely to spike as a result of the Middle East conflict, on top of existing economic policies, we could even see an interest rate increase. Hopefully, a steady hand on the tiller keeping rates where they are, rather than a kneejerk reaction that creates higher costs for homeowners, will prevail.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Despite inevitable worries that the present geopolitical uncertainty will increase upward pressure on inflation and mortgage payments, we have seen no price reductions or withdrawals from agreed sales in our offices other than for property-related reasons.
“Most buyers are obviously nervous about the impact of the conflict but are adopting a ‘wait-and-see’ stance for now at least.
“These figures from Rightmove reflect asking prices rather than sales values and determine whether genuine buyers are attracted so may take a little longer to reflect any change in sentiment.
“Sellers should know confidence takes a long time to build but can disappear quite quickly and the market continues to be price-sensitive, bearing in mind particularly high stock levels. However, sellers and buyers will be hoping the Bank of England keeps interest rates unchanged this week and that activity will shortly resume the steady improvement seen at the beginning of 2026.”
