Housing market activity is proving resilient as war in the Middle East continues for longer than originally anticipated. Committed buyers and sellers are pressing ahead, helping demand holding firm in the face of elevated borrowing costs.
Uncertain outlook
The Middle East conflict has lasted longer than anticipated, continuing to weigh on global markets and the broader economic outlook. Against this backdrop, the Bank of England held interest rates steady at 3.75% at its April meeting, with futures markets are currently pricing in a single rate hike across 2026. The Bank of England decision came as headline inflation rose to 3.3% in March, driven largely by higher energy costs¹. However, underlying inflation came in below expectations at 3.1%, strengthening the Bank of England’s case to hold rates steady in the near term.
Buyer demand
Buyer sentiment, while slightly softer, remains resilient in the face of higher mortgage rates due to global uncertainty. Buyer enquiries are down 2% on last year, though have rebounded since Easter, and are now running at their highest level since the outbreak of the conflict in late February². Mortgage approvals in March rose to 63,531, their highest level in four months, and are sitting just 0.8% below the same time last year³. Movers are taking a measured approach as they assess pricing, wider economic signals and an uncertain longer-term picture.
Time on market
The average time to sell a property currently stands at 32 days in March, down from 39 days in February and lower than 36 days a year ago⁴, an encouraging sign that people who need to move are still moving forward. Regional variations persist, higher-priced areas tend to move slower while more affordable regions are seeing homes change hands more swiftly. Scotland leads as the quickest market at just 20 days, followed by the North East at 23 days. As price sensitivity becomes increasingly evident, understanding local dynamics and setting a realistic price is key to achieving a timely sale.
¹ONS, ²Zoopla, ³Bank of England, ⁴PriceHubble, England and Wales, using InformationWorks data, March 2026
Read your local regional report
Dive into our local regional reports for Devon, Cornwall, and Somerset to stay informed about the latest property market trends in your area!
