- House prices fell 0.4% between February and March – although they were unchanged over the year (source: Private rent and house prices, UK: May 2026 – Office for National Statistics)
- They were down over the year in every English region except the East Midlands and the East of England, with prices in London falling 2.1% in the past 12 months
- Average monthly rents increased by 3.5% in the 12 months to April, to £1,381
- What are the opportunities in a falling market?
- How to escape the rental Catch 22
Sarah Coles, head of personal finance at AJ Bell, comments:
House prices
“Property prices are teetering on the edge. They fell between February and March, and on an annual basis they’ve dropped in seven out of nine regions in England. Unfortunately, things could get worse from here.
“These are the selling prices of sales that completed in March, so they reflect demand around the end of 2025. The market wasn’t much to write home about at the time and December tends to be a tricky month for sales anyway, but interest rates on mortgages were lower than they are now and were expected to fall coming into this year.
“Since then, the harsher environment is likely to have taken a toll. Mortgage rates climbed for weeks, and although they’ve eased slightly, they’re still higher than before the start of the Iran war. It means we could see some annual price falls filter into the figures in the coming months.
“In a market of falling prices, it’s worth taking stock of where you stand. There’s less pressure to move fast, so there’s an opportunity to take your time and negotiate a better deal. Some people will choose to bide their time and build a bigger deposit to give them more firepower when they come to buy. If you have a Lifetime ISA, it’s a chance to make the most of this year’s allowance and the government bonus. And if you choose to sit things out for a more significant period, there’s the chance to invest that money and make the most of your deposit in the interim.
Rents rise again
“Rent rises sped up fractionally in April. We’re a long way from the runaway rents of recent years, but we could be on the cusp of more rises.
“Costs are increasing for landlords. Higher mortgage rates, a tougher tax environment and new legislation are all having an impact. Some landlords are likely to sell up and get out when the maths stops making sense, while others are likely to increase rental demands. The more landlords sell up, the more tenants will be fighting over the properties that remain, which is only likely to push rents up further.
“It can be incredibly tough to see your way out of the Catch 22 of renting. The higher that rents rise, the better off you can be by buying, but the harder it is to spare the cash to put aside for a deposit.
“It means it’s worth asking for any help you can get. You may be able to get financial support from your family, or you may be able to put any spare money for a deposit into a Lifetime ISA to boost it by up to £1,000 a year using the government bonus. Alternatively, you may be able to move back home while you save, or could consider buying with friends or family. There are no easy solutions to the property buying challenges of this generation, but there are some options that can ease the pain slightly.”
