Finance
UK House Prices Sink 0.5% in March, Halifax Data Shows
Published by Global Banking & Finance Review®
Posted on April 8, 2026
2 min readLast updated: April 8, 2026
Add as preferred source on GoogleQuick Summary
UK house prices unexpectedly fell by 0.5% in March according to Halifax, defying forecasts of a 0.1% rise; annual growth also missed expectations, climbing just 0.8% year‑on‑year versus the anticipated 1.5%.
UK house prices dropped in March as Iran war weighed on outlook, Halifax said
Halifax Reports Unexpected Decline in British House Prices
Monthly House Price Trends
April 8 (Reuters) - British house prices slid unexpectedly last month as economic uncertainty stemming from the Iran war hurt buyer demand, mortgage lender Halifax said on Wednesday.
House prices fell by 0.5% month-on-month during March, Halifax said, following a 0.3% increase in February.
A Reuters poll of economists had pointed to a 0.1% increase.
Comparison with Nationwide Survey
The survey contrasted with findings from rival mortgage lender Nationwide, which recorded a sharp increase in house prices in March.
Annual House Price Index and Market Expectations
Halifax said its house price index was up 0.8% compared with March 2025, against expectations for a 1.5% annual increase.
Expert Commentary
"The recent slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East," said Amanda Bryden, head of mortgages at Halifax.
Impact of Economic Uncertainty and Energy Prices
"Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year."
(Reporting by Andy Bruce; Editing by Kate Holton)
Key Takeaways
- •Halifax’s March data shows a monthly drop of 0.5%, marking a sharper decline than expected 0.1% gain, signalling cooling demand. (moneyweek.com)
- •Annual price growth slowed to 0.8%, below the 1.5% forecast, indicating softening momentum in the housing market. (moneyweek.com)
- •This pullback follows modest gains earlier in 2026 (0.3% in February and 0.7% in January), showing a volatile start to the year. (moneyweek.com)
References
Frequently Asked Questions about UK house prices sink 0.5% in March, Halifax data shows
1By how much did UK house prices change in March 2025?
UK house prices decreased by 0.5% in March 2025 according to Halifax.
2What were economists expecting for March 2025 house prices?
Economists had predicted a 0.1% monthly increase in UK house prices for March 2025.
3How do annual house price increases compare to expectations?
Annual house prices rose by 0.8%, below the expected 1.5% increase.
4Which organization released the March 2025 UK house price data?
The data was released by mortgage lender Halifax.
