House prices rise in March as supply hits 11-year high

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House prices rise in March as supply hits 11-year high

Average asking prices for newly listed homes rose by 0.8% in March, climbing £3,023 to £371,042 as the spring selling season begins.

Rightmove says the increase follows an unusually flat February and that March normally brings a lift in asking prices.

However, the pace of house price growth is modest and is now close to the long-term average.

The number of homes available for sale is currently at an 11-year high, giving buyers a wider choice of properties and limiting stronger price increases.

The volume of properties for sale means they are taking longer to secure a buyer with the average time now the longest recorded for this stage since 2013.

Homes for sale

Rightmove’s property expert, Colleen Babcock, 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.”

She added: “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.”

Sale numbers up

Rightmove’s data shows the number of sales being agreed is 2% lower than the same point last year, while standing 5% higher than the equivalent period in 2024.

New supply entering the market shows a similar pattern which are 3% below last year but 7% higher than in 2024.

Buyer demand had already been running below last year’s levels before the conflict began.

Since the start of the Iran war, that level has not dropped further.

Regional price rises

Lower-priced regions are recording stronger annual growth with the North West showing a 2.6% increase in asking prices over the past year.

However, London saw a 2.1% fall.

Asking prices for homes with zero to two bedrooms have fallen by 0.4% over the past year.

By contrast, mid-market second-stepper homes have risen by 0.6%, while the largest homes at the top end of the market show no annual change.

Also, Rightmove’s daily mortgage tracker shows the average two-year fixed mortgage rate rising to 4.51%, up from 4.24% a week earlier.

Property sector reaction

Nathan Emerson, the CEO of Propertymark, said: “Consumers are generally in a far stronger position to purchase a property than they were a year ago, mainly due to several successive base rate cuts and falls in the rate of inflation as well.

“Our member agents have reported an encouraging start to the year, with a sense of resilience when looking at the number of properties being placed for sale and the number of viewings on each available property too.”

Tomer Aboody, the 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.”

Jeremy Leaf, a 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.”

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