UK house prices edge up as mortgage pain meets top-end resilience

UK house prices edged higher in April as the market defies wider economic pressure, with the average asking price rising by nearly £3,000 despite higher mortgage costs and an 11-year high in available stock.

According to property website data, the typical UK asking price now stands at £373,971, up 0.8% month-on-month.

While that marks continued growth, it remains below the long-term April average increase of 1.2%, suggesting momentum is cooling rather than accelerating.

The housing market is being pulled in opposite directions. On one side, elevated mortgage rates are weighing on affordability and limiting price growth.

On the other hand, a surge in supply — with the number of homes for sale at its highest level in over a decade — is intensifying competition among sellers and capping price inflation.

Buyer demand has proved more resilient than expected, particularly among first-time buyers, who appear less deterred by higher borrowing costs. However, much of the recent price strength is concentrated at the top end of the market, with larger, four-bedroom-plus homes recording the strongest gains.

That segment is being supported by cash-rich buyers, who are less exposed to interest-rate pressures and more insulated from financing constraints affecting the broader market.

Overall, the data points to a housing market that is still growing, but increasingly uneven — with resilience at the top end masking softer conditions elsewhere.

Colleen Babcock, a property expert at Rightmove, said: “With mortgage rates remaining elevated due to the war in Iran, it’s not a surprise that price growth is proving strongest in parts of the market less exposed to higher borrowing costs, such as top of the ladder homes, while sectors more exposed to interest rates are seeing slower momentum.

“Across Great Britain, Scotland stands out as an example of resilience, with average prices rising by over 4%. Lower average asking prices and a faster home-buying process continue to support price growth in the Scottish market.

“However, for most of the market, the combination of rising mortgage rates and the number of homes for sale being at its highest level for the time of year over a decade, means that competitive pricing is crucial for sellers looking to attract buyer interest and secure a sale this spring.”

Matt Smith, a mortgage expert at Rightmove, said: “At the start of the year there was growing optimism that (the Bank of England) base rate would continue to fall, but that picture has shifted following the conflict in Iran.”