Fine and Country National housing market update March 2026

£778,000 £1,094,690 -10.4%

£616 £33.1bn 11,991

Source: Dataloft by PriceHubble, Bank of England, HMRC, ONS

SPRING MARKET

The housing market began 2026 on a slightly softer footing, but easing inflation, falling mortgage rates and improving sentiment suggest activity is stabilising as the spring selling season gathers pace.

DOWNWARD TREND

The performance of the housing market is closely intertwined with wider economic conditions. The Bank of England has held the base rate in February at 3.75%, its lowest level since February 2023. However, with consumer price inflation easing to 3.0% in January, down from 3.4% in December¹, it is hoped the Bank of England may have the confidence to bring the base rate down further when they next meet. According to a poll², most economists anticipate a rate cut in March, with a further reduction expected later in the year, although the timing of that second move remains uncertain.

IMPROVING MORTGAGE MARKET CONDITIONS

Improving conditions in the mortgage market may help support market momentum. The average five-year fixed mortgage rate fell to 3.95% in January³. This marks the first time the rate been below 4% since September 2022, almost three and a half years ago. Meanwhile, the average two-year fixed rate stands at 3.91%. Mortgage lending conditions are also shifting, with several UK lenders now offering loans of up to six times income to eligible borrowers.

MIXED ACTIVITY

There were 94,680 transactions completed in January, 1% lower than the same month last year and 5% below December’s level4 . This modest dip is not unexpected, as January is typically quieter due to seasonal effects. Transactions were only slightly below the strong start to last year, suggesting the market remained relatively resilient at the beginning of 2026. Meanwhile, there were 59,999 mortgage approvals in January, down 10% compared with a year earlier³. Approvals, which are a leading indicator of future transactions, likely reflected the economic uncertainty

that persisted following the November Budget and continued to weigh on borrower confidence toward the end of last year. However, more recent indicators point to a pickup in momentum into February, supported by lower mortgage rates and improved access to borrowing. Sales agreed are currently at the fourth-strongest February level of the past decade, though still 3% below the exceptionally strong start to 2025, when buyers rushed to complete purchases ahead of the April Stamp Duty deadline5 . In the latest RICS survey, a net balance of +35% of respondents expect sales volumes to rise over the year ahead, the strongest reading since December 2024 6

HOUSE PRICES HOLD STEADY

Annual house price growth remained steady at 1.0% in February, increasing by 0.3% month on month7. Prices are being kept in check by rising supply, with 6% more homes available for sale than a year ago5 . Looking ahead to 2026, further expected falls in interest rates and continued improvements in affordability should support the modest price growth anticipated this year.

In England and Wales, the average price of a prime market property is £1,094,690, softened by 10.4% year-on-year.

SPRINGING INTO ACTION

Spring is traditionally the busiest season for the housing market, with February and March emerging as the strongest months to list a property. Homes brought to market during this period are the most likely to go on to complete, with 66.3% successfully reaching completion, well above the 55.5% average recorded across 20258

¹ONS, ²Reuters, 3 Bank of England , 4HMRC, 5Zoopla, 6RICS, 7Nationwide, 8Rightmove

£550,000

£760,670 0%

£351

£536,000

£723,358 +0%

£378

£581,000

£756,064 -1.6%

£380

£478,000

£614,170 -2.6%

£330

£721,000

£937,250 -7.9%

£463

£900,000

£1,228,588 -10.3%

£554

£423,000

£554,858 -0.5%

£298

£508,000

£670,055 -2%

£349

£525,000

£675,042 -4.1%

£331

£792,000

£1,044,617 -6.9%

£522

£1,400,000

£2,171,992 -18.7%

£1,110

£281,775

£778,000

£1,094,690

£230,931

£700,000

£1,003,356

Source: Dataloft by PriceHubble, Land Registry.

£228,326

£655,000

£973,648

£277,723

£656,000

£881,954

£431,647

£979,000

£1,402,996

£293,301 £794,000

£1,109,266