- Prior +0.3%
UK house prices unexpectedly rose in March, with the jump being quite a big one at that. The monthly increase in house prices is the most since December 2024.
Typically, there is a bit of a "spring bounce" in the market. That being said, it could be a case of home buyers rushing to secure mortgage deals with the current rate amid fears of higher interest rates to come later on. That as the US-Iran conflict has significantly changed the central bank outlook and also the general trajectory of the global economy and inflation.
So, it is arguably a mix of seasonal and psychological factors driving up prices in the past month.
At the same time though, a negative hit to consumption and the overall economy is also a negative hit to the housing market outlook. As such, that is creating a bit of a muddy and messy picture at the moment. The monthly spike above is likely to be a one-off, especially as the US-Iran conflict is more likely to cloud the outlook rather than drive up demand conditions consistently in the months ahead.
