Rightmove's April 2026 House Price Index shows new seller asking prices rising 0.8% month-on-month to £373,971, even as average two-year fixed mortgage rates have jumped from 4.25% to 5.42% since the Iran war began. The UK property market is proving more resilient than many expected — but under the surface, demand is softening and the mortgage squeeze is starting to bite.
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★ Key figures — April 2026 • Average asking price: £373,971 (+0.8% MoM, -0.9% YoY) • Average two-year fixed mortgage: 5.42% (up from 4.25% pre-Iran) • Added monthly cost: around £235 on a typical new mortgage • Buyer demand: -7% vs same period 2025 • Homes for sale: +13% vs April 2024 • Scotland led regions at +4.3% YoY |
What the April HPI actually shows
Asking prices rose by £2,929 in April — a move consistent with February and March, but below the long-term April average. In a normal spring, the market would typically show stronger seasonal gains as sellers compete for buyers moving before summer. That is not happening this year. Sellers are coming to market in near-normal numbers (just 1% behind last April), but buyers are cautious.
Buyer demand in April is 7% lower than the same window in 2025. The number of sales agreed is running 3% below 2025. Neither is a collapse, but both are clear signs that households are reassessing what they can afford in a market where mortgage rates have repriced sharply upward.
The mortgage picture has shifted hard
Rightmove's own daily mortgage tracker shows the average two-year fixed rate at 5.42%, up from 4.25% before the Iran conflict began on 28 February. That is a shift of 117 basis points in under two months, and it translates directly into household budgets.
On a typical new mortgage, Rightmove estimates the monthly cost has risen by around £235. Over the life of a 25-year loan, the additional interest cost runs into tens of thousands of pounds. That is the real story behind the relatively steady headline price figure — affordability has tightened even though nominal prices have held up.
The initial shock appears to have passed, with mortgage rates stabilising over the past couple of weeks, but they remain elevated. The next moves will depend on upcoming UK inflation data and how the Bank of England responds. — Matt Smith, Rightmove mortgages expert
Who is still buying?
First-time buyer demand is down 6% — less than the overall market's 7% drop. That is consistent with what Rightmove has seen in previous rate-shock periods: first-time buyers have less optionality than movers, and many are still actively trying to get on the ladder despite the numbers getting tougher.
Recent changes to Loan-to-Income limits and stress testing, following last year's FCA review, have also allowed some first-time buyers to borrow more than they could a year ago. Combined with average earnings up 3.9% year-on-year — ahead of the 0.9% decline in asking prices — headline affordability has technically improved, even though rate-driven monthly costs have risen.
Regional picture — Scotland leading, London lagging
| Region | April 2026 YoY change | Context |
|---|---|---|
| Scotland | +4.3% | Strongest-growing region; lower entry prices support demand |
| North East / North West | Moderate positive | Manchester outperforming many southern counterparts |
| Midlands | Flat | Resilient, affordability still relatively strong |
| London | Marginal | Top-of-market weakness ahead of mansion tax from April 2028 |
What this means if you are selling
The supply side is the critical factor. With the number of homes for sale 13% higher than in April 2024, buyers have plenty of choice. Overpriced homes will sit. Rightmove data consistently shows that properties which do not require an asking-price reduction sell in roughly half the time.
Practical implications for sellers:
- Price to market, not to hope. Getting the asking price right first time is the single biggest lever on how fast a property sells.
- Factor in the mortgage reality for your buyer pool. A house priced at the top of a buyer's stretch budget pre-Iran may now be out of reach post-Iran.
- If you need to move, do not delay expecting meaningful price appreciation in the next six months — the current forecast is flat.
What this means if you are buying
Buyers have the stronger negotiating hand than at any point in the past three years. Asking prices are down 0.9% year-on-year; properties are sitting longer (81 days in January 2026 versus 59 days in April 2025); and the stock of homes for sale is at a decade high for this time of year. Sensible offers below asking price are being accepted more readily than they would have been twelve months ago.
The catch is the mortgage. A lower purchase price is not much consolation if you are paying £235 a month more in interest. The arithmetic is highly specific to your deposit, loan-to-value, and how long you intend to hold.
Disclaimer
This article summarises Rightmove's April 2026 House Price Index and related market data. It is information, not personal property or financial advice. Property decisions involve many factors beyond market averages; talk to a regulated mortgage broker and a solicitor before transacting.
Frequently asked questions
Is this a good time to buy?
It depends on your horizon. If you are buying for five-plus years and can absorb higher mortgage costs, the combination of softer prices and elevated supply works in your favour. If you are stretching at current rates and would struggle if rates moved higher still, the answer is more cautious.
Will house prices fall this year?
Rightmove's 2026 forecast was for 2% asking-price growth. That looks stretched given current conditions; the firm has not revised it formally, but year-on-year asking prices are currently -0.9%. A flat to slightly negative 2026 is more consistent with the evidence than meaningful growth.
Why are mortgage rates so high when Bank Rate is only 3.75%?
Fixed-rate mortgages are priced off swap rates and gilt yields, not directly off Bank Rate. Both have risen on the expectation that inflation stays higher for longer — exactly the outcome the Iran conflict made more likely.
When will the next HPI come out?
Rightmove publishes the HPI monthly, typically around the third Monday of the month. The May 2026 index will land in mid-May, and will capture whether the April stability is holding.
The bottom line
The April 2026 HPI tells a story of a market holding up better than feared but clearly slower underneath. Asking prices are just below last year's level, supply is abundant, and mortgages are meaningfully more expensive. For buyers with stable finances, there are opportunities here. For sellers, the message is straightforward: price for the market you have, not the market you wish you had.
