Committed movers support housing sales as Middle East tensions push up mortgage rates and cool buyer demand. Too early to see an impact on house prices as sales hold firm for now
Growing gap between sales agreed and buyer demand is the key theme in March
Sales agreed are down -2% (YoY) with the market being supported by committed movers with mortgages agreed
Buyer demand has weakened further over March, down by 13% (YoY) as rising mortgage rates and uncertainty impact confidence
Average mortgage rates increase by 0.4 percentage points in recent weeks
Trends in sales and buyer demand replicated across the country and no difference in trends between first time buyers and existing homeowners
UK house price inflation is stable at +1.3% (YoY)
UNDER EMBARGO UNTIL 00.01 MONDAY 30TH MARCH 2026, London: The UK housing market is seeing steady levels of sales activity despite rising uncertainty linked to events in the Middle East, according to Zoopla’s latest House Price Index as tensions push up mortgage rates and reduce buyer demand.
While the market remains active, it is increasingly being driven by a smaller group of committed buyers as some households start to delay moving decisions. This is creating a growing gap between weaker buyer demand and more stable levels of sales agreed.
Table 1: Divergence between sales agreed and home buyer enquiries
Zoopla’s data shows that buyer demand has been running below last year’s levels across the first 3 months of the year. Demand has weakened further over March, reflecting the impact of events in the Middle East with buyer enquiries 13% lower than a year ago as potential buyers adopt a more cautious, ‘wait and see’ approach. Average mortgage rates have increased by 0.4 percentage points in the last month, with many sub-4% deals being withdrawn as financial markets, and buyers, adjust to uncertainty over the inflation outlook.
However, sales agreed are proving more resilient than demand, registering a decrease of just 2% year-on-year. This reflects the continued presence of “committed movers” – buyers with mortgage offers agreed and/or a clear need to move – who are continuing to support the number of sales agreed.
Fewer buyers, but more motivated movers supporting sales
This gap between buyer demand and more stable sales agreed is reflected across the country. Buyer enquiries have decreased by between 7% and 19% year-on-year, with the largest decline in active buyers recorded in the North East and West Midlands, albeit with enquiries falling off a high base compared to last year.
Table 2: The gap between sales agreed and buyer enquiries is seen across the country
Meanwhile, sales agreed are holding up more consistently, with more modest declines in northern regions of England, again off a high base. Unlike buyer demand, sales agreed are flat or slightly higher in some regions -such as Wales, Yorkshire and the Humber and London compared to last year.
At the same time, the overall number of homes for sale has increased by 6% year on year, reflecting a continued desire among homeowners to move despite the more uncertain backdrop.
A significant proportion of transactions are also less sensitive to rising mortgage rates. Around a quarter of sales are cash purchases, while many existing homeowners have built up equity and secured borrowing in advance, reducing the impact of higher mortgage rates. This is helping to support sales in the short term, but also highlights growing reliance on less mortgage-rate sensitive buyers.
House price growth remains stable
Overall, UK house price inflation is holding steady at +1.3% year on year, with little immediate impact from the recent weakening in buyer demand. Price trends remain uneven across the country. Growth is strongest in more affordable areas, with the North West recording annual growth of 3.5%, though price falls across southern England have moderated in recent months despite a softening in demand.
Zoopla does not expect house price growth to slow in the near term, although this depends on demand remaining stable in the coming months. A pricing impact would require a more sustained decline in buyer activity and sales volumes meaning current growth rates are set to continue.
Table 3: House price inflation %yoy - February 2026
Commenting on the report, Richard Donnell, Executive Director at Zoopla, said: “The market remains active, but becoming increasingly reliant on a smaller pool of serious buyers. Some early stage buyers are adopting a wait and see approach but there is a sizable group of committed buyers who are pressing ahead with housing purchases.
"If mortgage rates stabilise at current levels we expect sales activity to continue to hold up well compared to last year. Further increases in borrowing costs could weaken demand and impact sales volumes later in the year. The outlook is far from clear although over the last week we have seen a uptick in demand that has narrowed the gap to last year reflecting how some buyers paused on uncertainty and have subsequently decided to resume with the search for their next home while keeping their options open"
"For buyers, there is less competition and more choice, but affordability is becoming more stretched. For sellers, homes are still selling, but buyers are more selective and price-sensitive. Setting a realistic asking price with the help of a local agent will be critical to securing a sale.”