Average price of a UK home up £3,000 in April, Rightmove data shows

New data from property website Rightmove reveals that the average asking price for a house in England rose by a modest £3,000 in April.

While the typical price tag increased 0.8 percent monthly, that figure lags the long-term average April increase of 1.2 percent.

The average asking price across the country now stands at £373,971, representing an increase of £2,929 on the previous month.

Rightmove attributes the slow growth in asking prices from new sellers to two key factors: high mortgage rates and intense competition between sellers; Existing homes at this time of year are at their highest level in the last 11 years.

Interestingly, buyer demand remained relatively strong among first-time buyers. This suggests that despite high mortgage costs, potential first-time buyers are not deterred from investigating, indicating a resilient market segment.

But the price increase in April was mainly driven by “upper-end” higher-priced homes with four or more bedrooms, where some buyers were cash buyers and less sensitive to rising borrowing costs, it said.

Rightmove property expert Colleen Babcock said: “With mortgage interest rates remaining high due to the war in Iran, it is no surprise that price growth has been strongest in parts of the market less exposed to high borrowing costs, such as high-end homes, while sectors more exposed to interest rates have seen a slower acceleration.

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

“However, rising mortgage rates across much of the market and the number of homes for sale at a decade-high mean competitive pricing is crucial for sellers looking to attract buyers and secure a sale this spring.”

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

He added: “The initial shock appears to have passed with mortgage interest rates stabilizing over the last few weeks, but they remain high.

“Next moves will depend on upcoming UK inflation data and how the Bank of England responds. If policy decisions are in line with current market expectations, a period of relative stability rather than meaningful declines is more likely.”

Last week, many lenders cut mortgage interest rates following reductions in swap rates used by lenders to set mortgage prices.

Marc von Grundherr, director at Benham and Reeves, said: “The combination of increasing geopolitical uncertainty and a rise in mortgage rates has understandably given some buyers pause for thought, particularly at the higher end of the market where affordability is already stretched.

“However, what we saw was not a loss of confidence, but a more cautious and thoughtful approach from both buyers and sellers.”

He added: “London is often one of the last markets to turn around, but tends to do so strongly once momentum starts to build.

“We are already seeing the first signs of this turnaround, particularly in areas where pricing is realistic and buyers can still see long-term value.”

Mark Wiggin, Director of Mark Wiggin Estate Agents, said: “Buyers start with three things: price, photographs and how long a house has been listed.

“If something has been on the market for more than a few months, buyers immediately assume it is overpriced. In this market, sellers need to respond to that feedback; the market will always tell you when the price is not right.”

Polly Ogden Duffy, Managing Director at John D Wood & Co, said: “With the supply of homes increasing – particularly flats remaining from 2025 – buyers have more choice and are less inclined to engage with overpriced properties, meaning sellers who price too aggressively risk missing out on serious, actionable buyers.

“In contrast, the single-family housing market continues to perform strongly, particularly in areas with sought-after schools, where demand can still exceed supply, resulting in multiple offers in some cases.”

Peter Ryder, managing director of Thorntons Property Services, said: “The property market in East Scotland and Inverness continues to show resilience despite wider economic uncertainty.”

The report was published as a separate study by real estate firm Hamptons, which said growth in rental prices for newly rented homes accelerated in March.

The rate of increase in rental prices on newly rented homes accelerated in March, the Hamptons said, with average annual growth across England doubling from 0.5 per cent in February to 1.0 per cent in March, reaching an average of £1,373 per month.

Aneisha Beveridge, head of research for the Hamptons, said: “While rents fell last year, early signs suggest the rate of rent growth is starting to pick up as tenant demand recovers.”

The Hamptons rental index uses data from Connells Group to track changes in rental costs and is based on achieved rents rather than advertised rents.

According to the Hamptons, the average monthly rents of newly rented homes in March and the annual change are as follows:

London, £2,305, 2.2%

East of England, £1,260, 0.6%

South East, £1,465, 0.0%

South West, £1,247, 0.2%

East Midlands, £999, 1.8%

West Midlands, £1,087, 1.2%

North East, £823, minus 1.3%

North West, £1,028, 0.9%

Yorkshire and Humber, £917, 0.2%

Wales, £879, minus 0.8%

Scotland, £1,014, 0.8%