UK property asking prices rose 0.8% in April to an average of £373,971, marking resilience in the housing market despite higher mortgage rates following the Iran war. The increase, though below the long-term average of 1.2% growth, came as mortgage rates climbed to 5.42% for two-year fixed deals, adding approximately £235 monthly to typical new mortgages.

Rightmove's Colleen Babcock noted that while higher living and borrowing costs made some buyers cautious, home-movers showed typical resilience with their housing needs trumping geopolitical events. Buyers benefited from rising wages, lower house prices, and more flexible borrowing criteria following the FCA's review of loan-to-income caps, which now allows typical homebuyers to borrow more.

London remained an outlier with asking prices falling 0.1% month-on-month and 2.7% annually, the steepest decline in Great Britain. The number of homes for sale reached an 11-year high, with new listings up 13% compared to 2024's post-peak mortgage rate recovery period. Despite market uncertainties from the Iran conflict affecting global energy prices, the Bank of England is widely expected to hold interest rates at 3.75% when its Monetary Policy Committee meets later this month.