As March gets underway, the outlook for the UK housing market appears more positive than many anticipated at the start of the year.

Following a slower start to 2026, modest price growth, improving levels of available property, and steady buyer demand suggest the spring market could bring a period of stable and sustainable recovery, with balanced conditions for both buyers and sellers.

Properties priced under £500,000 have continued to change hands regularly with a shortage of supply driving demand, but correct pricing remains essential to securing a timely sale. The market between £500,000 and £1m has been slower with a more cautious buyer demographic, the £1m + market has started to show signs of recovery but buyers are particular and pricing has to be right.

Fresh data from Nationwide Building Society, reported by Reuters, shows house prices rose in February, exceeding expectations and signalling renewed confidence amongst buyers. According to the same publications, annual growth is holding at around 1%, reinforcing the idea of a stable market environment rather than a volatile one. Meanwhile, reporting in The Guardian highlights a 0.3% monthly increase in February, suggesting a positive momentum heading into March, despite the current worldwide turmoil.

Encouragingly for buyers, supply seems to be improving. Analysis linked to Zoopla and covered by The Guardian shows that there are around 6% more homes on the market compared with a year since. Greater choice typically supports transaction volumes and market liquidity, key ingredients for a healthy spring season. Zoopla’s own house price index also points to modest but broad-based gains across much of the country, reflecting balanced conditions rather than speculative surges.

While mortgage approvals dipped in January also reported by Reuters using Bank of England data, this appears to reflect short-term caution rather than structural weakness. Financial markets continue to anticipate potential interest rate stability or cuts later in 2026, a factor that could further underpin confidence in the months ahead.

Longer-term forecasts reinforce the upbeat tone. The Halifax Housing Market Outlook for 2026 projects modest price growth over the year, citing improving affordability dynamics and resilient employment. Commentary, in the Financial Times also points to continued activity in the higher-end market, even as buyers and sellers adapt strategically to evolving tax thresholds, a sign of engagement rather than retreat.

When we look at all of this together, the data paints a positive picture for March. Prices are rising gently, listings are increasing, and institutional forecasts expect gradual growth rather than decline.

After a period of adjustment in 2024–25, the UK housing market appears to be entering spring on firmer footing steady, sustainable and supported by improving sentiment.

If you would like further advice on the property housing market, we would love to hear from you.