UK house prices showed no growth over the past year, with the Office for National Statistics reporting an average home value of £268,000 in March, unchanged from a year earlier. The market recorded its first 12‑month stretch of zero growth in almost two years and a 0.2% monthly dip—the first decline since December. Prices slipped in London and several English regions.

Rising mortgage costs and geopolitical tension have throttled demand. Traders, betting on a Bank of England rate hike, pushed the average two‑year fixed mortgage to 5.73%, up 0.9 percentage points since late February, after the US and Israel struck Iran. At the same time, higher energy bills and political uncertainty surrounding Prime Minister Keir Starmer’s leadership challenge have squeezed household finances.

Industry body Propertymark’s chief executive Nathan Emerson described the market as “active but measured,” noting that buyers continue to view properties and make offers but negotiate more cautiously, keenly aware of value and monthly mortgage outlays. Recent mortgage‑originations data suggest some resilience in demand, though the full impact of the Middle‑East conflict has yet to appear in transaction figures.

Regional figures reveal a split picture. London posted a 2.1% annual decline, the steepest drop among UK regions, while the North West, North East and Yorkshire and the Humber recorded their first year‑on‑year falls since 2024. Conversely, house prices in Northern Ireland, Scotland and Wales kept climbing, underscoring uneven pressure on investors and developers across the British market.