FX.co ★ UK House Price Growth Accelerates in March

The UK Nationwide House Price Index rose 2.2% year-on-year in March 2026, up from 1.0% in February and marking the fastest annual increase since October. On a monthly basis, prices climbed 0.9%, beating forecasts of a 0.6% gain and accelerating from a 0.3% rise in the previous month.

Chief Economist Robert Gardner said the rebound points to improving market conditions, but cautioned that rising global energy prices linked to tensions in the Middle East present downside risks. He warned that UK economic growth could slow even as inflation overshoots expectations. Markets are now pricing in three interest rate hikes over the next year, compared with earlier expectations of cuts, pushing up mortgage costs and putting additional pressure on affordability and housing demand.

Even so, underlying fundamentals remain supportive. The labor market is still resilient, household debt levels are relatively low, savings are strong, and around 90% of mortgages are on fixed rates, cushioning borrowers from immediate rate increases. Regionally, performance was mixed in Q1: Northern Ireland led with annual growth of 9.5%, followed by North West England at 3.3%, while England overall lagged with a more modest 0.9% increase.