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The UK housing market has seen a ‘recent slowdown’ amid the conflict in the Middle East, the latest tracker from mortgage lender Halifax showed Wednesday. UK house prices declined 0.5% on-month in March, after a 0.3% rise in February from January. On-year, growth eased to 0.8% from 1.2%, according to Halifax. ‘The recent slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East. Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year,’ Halifax analyst Amanda Bryden said. ‘The effect on house prices will largely depend on how longlasting these pressures prove to be and the wider implications for the economy and unemployment.’ Bryden said that many more would-be buyers are ‘likely to watch movements in mortgage rates closely’ before committing to a purchase. ‘However, the recent increase in UK mortgage rates has been more modest than the sharp rises seen during the mini budget of 2022. Further, many households will already be on fixed deals, protecting them from the latest rate rises. Taking all this into account, house prices may prove resilient, even if uncertainty weighs on market activity in the near term,’ the analyst added. Promisingly, a ceasefire was agreed between the US and Iran overnight. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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