What is UK consumer confidence in 2026?

GfK's UK consumer confidence index stood at -21 in March 2026, with expectations for the year ahead at -37 — among the weakest readings in recent months.

Does consumer confidence affect house prices?

Yes. Low consumer confidence typically reduces housing market activity and can put downward pressure on prices as fewer buyers are willing to make large financial commitments.

News & Guides ⏱ 2 min read min read 📅 Updated Apr 2026

UK Consumer Confidence Drops to -21 — The Lowest Reading in Months

GfK's UK consumer confidence index fell to -21 in March 2026, the lowest in months. Here's what it signals about spending, house prices and the economy ahead.

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 3 Apr 2026

Last reviewed 3 Apr 2026

✓ Fact-checked

UK Consumer Confidence Drops to -21 — The Lowest Reading in Months

Consumer Confidence — April 2026

April 3, 2026 — London

UK consumer confidence fell two points to -21 in March 2026 according to GfK's monthly index — the lowest reading in several months. The Major Purchase Index, which measures willingness to make big purchases, fell four points to -18. Expectations for the year ahead dropped sharply by six points to -37.

What the Numbers Mean

GfK Index Component	March 2026	Change
Overall confidence	-21	-2 points
General economic outlook (last 12 months)	-43	+1 point
Expectations for year ahead	-37	-6 points
Major Purchase Index	-18	-4 points
Savings Index	+6	Rising — people saving not spending

A rising Savings Index alongside a falling Purchase Index is a clear signal: UK households are holding onto their money rather than spending — a sign of economic anxiety.

What This Means for the Economy

Consumer spending accounts for approximately 60% of UK GDP. When confidence falls and spending drops, it puts further pressure on an economy already growing at just 0.7%. Retailers, restaurants, and hospitality businesses will feel this most acutely in Q2 2026.

What It Means for House Prices

Falling consumer confidence and a rising savings preference typically lead to fewer house purchase decisions. Combined with high mortgage rates, this puts downward pressure on house prices in 2026 — particularly in regions already seeing price softness. See our Average House Price UK 2026 tracker.

Bottom line: UK consumers are worried — and pulling back on spending. This is rational given high inflation, elevated mortgage rates, and Middle East uncertainty. For your own finances, building a savings buffer now (when rates are still 4.5%+) makes sense before any potential economic deterioration.