UK Property Market Report Q1 2026: House Prices, Rents & Mortgage Trends
UK Property Market Report Q1 2026: House Prices, Rents & Mortgage Trends
Q1 2026 in a nutshell.
The four house price indexes Viewber tracks showed values edged upwards in Q1 of 2026, by an average of 1.6%. Homeowner expectations need managing, however, as rises have been moderate (generally between 0.1% and 3%), with some regional blips.
There was a consensus across rental indexes when it came to values, with tenants paying between £1,200 and £1,300 per month. Rents are around 2% more expensive now, when compared to Q1 of 2025.
Question marks hang over the future of two important rates: the Bank of England’s Bank Rate and mortgages rates. We start Q2 with a Bank Rate of 3.75%, with mortgage rates sitting just under the 5% mark.
The price details
All the numbers that matter from across the property industry
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House Prices
Rightmove (House Price Index >)
• January: average UK asking price – £368,031: +2.8% more than December 2025
• February: average UK asking price – £368,019: broadly unchanged when compared to January
• March: average UK asking price – £371,042: +0.8% more than February
• Average number of homes per estate agent: 57 in February
Zoopla (House Price Index >) (1 month behind)
• January: average UK house price – £270,300: +019% more than December 2025
• February: average UK house price – £270,500 +0.07% more than January
• Annual UK house price inflation: +1.3% at the end of Q1 2026
Nationwide (House Price Index >)
• January: average UK house price – £270,873 +0.3% more than December 2025
• February: average UK house price – £273,176: +0.3% more than January
• March: average UK house price – £277,186: +0.9% more than February
• Annual UK house price inflation: +2.2% at the end of Q1 2026
Land Registry (UK House Price Data >) (2 months behind)
• January: average UK house price – £268,000: down -0.3% from December 2025
• Annual UK house price inflation: +1.3% at the end of January
• Greatest annual house price increase: the North West: +3.1%
• Greatest annual house price decrease: London: -1.7%
Rental values
HomeLet (Rental Index >)
• January: average UK monthly rent – £1,302: -1.1% less than December 2025.
• Annual rental growth: up +2.4%.
• February: average UK monthly rent – £1,301: -0.1% less than January
• Annual rental growth: +2%
• March: average UK monthly rent – £1,311: +0.8% more than February
• Annual rental growth: +1.8%
Goodlord (Rental Index >)
• January: average rental cost in England – £1,201: +2% more than December 2025
• Greatest monthly increase: North East: more than 8%
• Annual rental growth: +2.3%
• February: average rental cost in England – £1,203: +0.15% more than January
• Greatest monthly increase: North West: almost +4%
• Annual rental growth: +2%
The fiscal details
Bank of England’s Bank Rate
The Bank of England’s Monetary Policy Committee met on 4th February and decided to keep the Bank Rate at 3.75%. The committee met again on 18th March, with the Bank Rate held at 3.75%.
Next Bank Rate decision: the committee will meet on 30th April
Mortgage rates
Owner occupier mortgage rates, supplied by Uswitch 31st March
• 2 year fixed rate (75% LTV) 4.53%
• 5 year fixed rate (75% LTV) 4.96%
• 2 year variable rate (75% LTV) 4.25%
Buy-to-let mortgage rates, supplied by Moneyfacts 30th March
• 2 year fixed rate buy-to-let (75% LTV) 5.28%
• 5 year fixed rate buy-to-let (75% LTV) 5.65%
Lending news: The Bank of England’s Money and Credit report revealed 62,600 mortgages were approved for house purchases in February, up from 60,200 in January.
Inflation: Consumer price inflation was 3.2% in both January and February (ONS data >)
Regulation corner
Renters’ Rights Act (Government overview >)
The 1st May 2026 will see the majority of the Renters’ Rights Act take effect.
EPC expectation (EPC guidance >)
In February, the Government pushed back the EPC target timeline.
The Housing (Scotland) Act 2025 (Scottish Parliament >)
The contents of The Housing (Scotland) Act 2025 will be phased in imminently.
The Killer Question
Did you take part in the Government’s consultation about buying & selling reforms?
No = 89%
Yes = 11%
Looking ahead to Q2
Q2 of 2026 looks set to be an eventful three months, with four Bank Holidays and the implementation of the Renters’ Rights Act shaping the landscape. Alongside this, we’ll be closely monitoring the Middle East crisis and its potential knock-on effects for UK inflation and wider market confidence.
