April 20, 2026 — Asking prices for homes in the UK rose in April, new data shows. This increase comes despite persistently high mortgage rates and a surge in global energy costs linked to geopolitical tensions.
Market Shows Unexpected Strength
Data from the UK’s major property portals indicates a month-on-month increase in the average price sellers are asking for their homes. This upward move defies expectations from many economists, who predicted that higher borrowing costs would dampen price growth or even lead to declines.
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The resilience suggests underlying demand remains firm. Industry watchers note that a continued shortage of available homes for sale is supporting prices. Sellers appear confident they can achieve their target figures, even as buyers face more expensive financing.
Mortgage Rates and Energy Costs Weigh
The Bank of England’s base rate has remained elevated as it works to control inflation. According to financial data provider Moneyfacts, the average rate for a two-year fixed mortgage is still above 5%. This is significantly higher than the ultra-low rates seen in the early 2020s.
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At the same time, household budgets are being squeezed. The conflict involving Iran has disrupted global energy supplies, leading to a sharp increase in oil and gas prices. This has pushed up domestic utility bills and broader inflation.
“Typically, you would expect these two pressures—costlier mortgages and higher living expenses—to cool the housing market considerably,” said an analyst from a leading property consultancy. “The fact that asking prices are still rising points to a market with deep-seated supply constraints.”
Regional Variations and Buyer Sentiment
Not all areas are experiencing the same trend. Early figures suggest the price gains are most pronounced in certain regions, while London and the Southeast show more muted growth. The premium for detached homes with better energy efficiency ratings also appears to be widening.
For buyers, the environment is challenging. Affordability calculations have been upended. A buyer who qualified for a £300,000 mortgage two years ago might now only be approved for £240,000 at today’s rates, assuming the same income. This forces many to adjust their property search downwards or save for a larger deposit.
But the data implies enough buyers are still active to meet seller expectations. This could signal a market that is slowly adjusting to a new normal of higher rates, rather than one on the brink of a sharp correction.
What This Means for the Market
The increase in asking prices is a leading indicator. It reflects seller confidence more than final sold prices, which may still be subject to negotiation. Official land registry data, which records completed sales, typically lags by several months.
The key test will be the volume of sales agreed in the coming weeks. If agreed sales fall sharply while asking prices hold steady, it could indicate a growing mismatch between seller expectations and what buyers are willing or able to pay.
For now, the market displays a stubborn strength. The implication is that the UK’s chronic housing shortage is providing a powerful counterweight to significant economic headwinds. Whether this resilience can be sustained if high mortgage rates persist through 2026 remains the central question.
Market data referenced in this report is sourced from Rightmove’s monthly price index and Moneyfacts mortgage rate comparisons.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
