UK house prices rise by nearly £3,000 in April as supply hits 11-year high

The typical asking price for a home rose by nearly £3,000 month-on-month in April, according to a leading property website. But the 0.8% monthly increase in average asking prices fell short of the long-term April average rise of 1.2%, Rightmove said.

Across Britain, the average asking price in April is £373,971, up £2,929 from the previous month. Rising mortgage rates and fierce competition amongst sellers to secure a buyer are hampering asking price growth this spring, with the number of homes on the market at an 11-year high for this time of year. Buyer demand has remained relatively strong among first-time buyers, suggesting that higher mortgage rates are not deterring prospective buyers from making enquiries.

However, price growth in April has been predominantly driven by higher-priced, "top of the ladder" homes with four or more bedrooms, where many buyers are cash purchasers and are therefore less affected by rising borrowing costs.

Colleen Babcock, a property expert at Rightmove, said: "With mortgage rates remaining elevated due to the war in Iran, it's not a surprise that price growth is proving strongest in parts of the market less exposed to higher borrowing costs, such as top of the ladder homes, while sectors more exposed to interest rates are seeing slower momentum.

"Across Great Britain, Scotland stands out as an example of resilience, with average prices rising by over 4%. Lower average asking prices and a faster home-buying process continue to support price growth in the Scottish market.

"However, for most of the market, the combination of rising mortgage rates and the number of homes for sale being at its highest level for the time of year over a decade, means that competitive pricing is crucial for sellers looking to attract buyer interest and secure a sale this spring."

Matt Smith, a mortgage expert at Rightmove, said: "At the start of the year there was growing optimism that (the Bank of England) base rate would continue to fall, but that picture has shifted following the conflict in Iran."

He added: "The initial shock appears to have passed, with mortgage rates stabilising over the past couple of weeks, but they remain elevated.

"The next moves will depend on upcoming UK inflation data and how the Bank of England responds. If policy decisions align with current market expectations, a period of relative stability is more likely than meaningful falls."

A number of lenders have trimmed their mortgage rates over the past week, following a decline in swap rates, which are used by lenders as a benchmark for pricing mortgages.

Marc von Grundherr, director of Benham and Reeves, said: "The combination of heightened geopolitical uncertainty and the increase in mortgage rates has understandably caused some buyers to pause for thought, particularly across the higher end of the market where affordability is already stretched.

"However, what we've seen is not a collapse in confidence, but a more cautious and considered approach from both buyers and sellers."

He added: "London is often one of the last markets to turn, but when momentum does begin to build it tends to do so strongly.

"We're already seeing the early signs of that return, particularly in those areas where pricing remains realistic and buyers can still see long-term value."

Mark Wiggin, director of Mark Wiggin Estate Agents, said: "Buyers start with three things: the price, the photos and how long a home's been listed.

"If something's been on the market for more than a few months, buyers immediately assume it's overpriced. In this market, sellers must respond to that feedback – the market always tells you when the price isn't right."

Polly Ogden Duffy, managing director at John D Wood & Co said: "With an increased supply of homes – particularly flats lingering from 2025 – buyers have more choice and are less inclined to engage with overpriced properties, meaning sellers who price too ambitiously risk missing out on serious, proceedable buyers.

"In contrast, the family housing market is continuing to perform strongly, especially in areas with sought after schools, where demand can still outstrip supply and, in some cases, result in multiple bids."

Peter Ryder, managing director at Thorntons Property Services, said: "The property market across the East of Scotland and Inverness continues to show resilience despite wider economic uncertainty."

The report coincided with separate research from property firm Hamptons, which revealed that rental price growth on newly-let homes gathered pace in March.

The rate of rental price growth on newly-let homes accelerated in March, with average annual growth across Britain doubling from 0.5% in February to 1.0% in March, reaching an average of £1,373 per month, according to Hamptons.

Aneisha Beveridge, head of research at Hamptons, said: "While rents fell last year, early signs suggest the pace of rental growth is beginning to pick up as tenant demand rebounds."

The Hamptons lettings index utilises data from the Connells Group to monitor shifts in rental costs and is founded on achieved rather than advertised rents.

Below are average monthly rents on newly-let homes in March and the annual change, according to Hamptons:

• London, £2,305, 2.2%
• East of England, £1,260, 0.6%
• South East, £1,465, 0.0%
• South West, £1,247, 0.2%
• East Midlands, £999, 1.8%
• West Midlands, £1,087, 1.2%
• North East, £823, minus 1.3%
• North West, £1,028, 0.9%
• Yorkshire and the Humber, £917, 0.2%
• Wales, £879, minus 0.8%
• Scotland, £1,014, 0.8%