07/05/2026
Demand and sales rebound, but with fewer affordable mortgages:
> The war in Iran has curbed spending power as mortgage rates adjust in anticipation of energy-cost inflation.
>Housing supply is at an 11-year high in some regions, with 5% more homes for sale than a year ago.
> The average 75% LTV fixed rate across the 6 big lenders is over 5% (Mojo Mortgages)
> House prices across England & Wales grew 0.9% YoY to £284,720 (HPI).
> Remortgage approvals are at their highest since 2018 pre-COVID.
> The Base Rate was held at 3.75% on the 30th April, but will likely increase in June if inflation rises.
The UK housing market in April demonstrated remarkable resilience in the face of external shocks. Despite the "Iran War" effect driving average two-year fixed mortgage rates up to 5.42%, the market remains functional and resilient.
Buyer enquiries have rebounded to their highest levels since February, proving that needs-based movers are undeterred by the current geopolitical climate. The annual house price growth has remained steady at 1.3% nationally, though this masks a clear North-South divide. The North East continues to outperform, while southern regions face modest price softening amid higher affordability pressures.
This has meant that transaction volumes are holding firm, currently running just 3% lower than the exceptionally strong market of April 2025, and with 5% more homes for sale than this time last year, buyers have more choice, making realistic pricing essential for a successful sale.
In summary, while the market is "shifting" in response to higher borrowing costs and inflation concerns, it is far from stalling. Stability remains the dominant theme as we head into the summer months.
