April Market Report: Why competitive pricing is now essential

The signs were all there for a more traditional, predictable 2026 property market.  So, the news of the Middle Eastern conflict in early March created nervousness, and that early momentum began to wane.  The property market is sentiment driven, rising borrowing costs and economic uncertainty erode confidence.  

Tarrant Parsons, head of market research and analysis for RICS, said: “What had been a cautiously improving picture for activity has been knocked off course by the wider macro fallout from the Middle East conflict, as the renewed deterioration in the mortgage rate outlook has proved particularly challenging.”

The mortgage industry has been working very hard, dealing with concerned buyers and sellers as their mortgage products changed overnight. 

Charlotte Skinner, Director of The Surrey Mortgage Company and our trusted advisor, commented: 

“It’s definitely been a very reactive few weeks in the mortgage market.  Initially, we saw quite a sharp impact following the escalation in the Middle East.  Swap rates rose quickly, which led to lenders pulling products and repricing almost overnight.  However, things seem to be settling.  Swap rates have eased back from their peak and we’re starting to see some lenders cautiously reduce rates again, which suggests a degree of stabilisation returning to the market.   That said, the underlying issue is inflation, driven by rising energy prices, which is keeping pressure on swap rates and, in turn, mortgage pricing.  So, while the initial shock has passed, sensitivity is likely to remain in the short term."

However, despite economic pressures, the housing market remains resilient.  Recent data from TwentyEA Property & Homemover Q1 Report found that the number of properties brought to market in Q1 was up by 5% compared to Q1 2025. The Office for National Statistics has also reported a 1.2% rise in average UK house prices.  

Headlines from the Rightmove April House Price Index:
•    Average new seller asking prices rise by 0.8% (+£2,929) in April to £373,971. This is consistent with February and March, but is below the long-term average for April.
•    The average two year fixed rate has risen to 5.42%, from 4.25% before the start of the war in Iran, adding a monthly average of around £235 to a typical new mortgage*.
•    The number of sales agreed for April to date so far this year is also staying steady, as we are currently just 3% behind this time last year.
•    Average earnings are still up by 3.9% annually, while asking prices for properties are down 0.9% year-on-year.

Buyers have spent the last 12/18 months adapting to continued affordability pressures.  As stability slowly creeps into the month, the last two weeks have felt more in kilter with a traditional Spring market.  Lots of new stock coming to market and plenty of new buyers out viewing and, more importantly, offering.

Word of caution, this is still a very priced sensitive market.  Any aspirational pricing is soon met with buyers who have more choice than ever (11 year high).  They can take their time, compare options and negotiate.  Pricing competitively is essential in today’s market.  Having an agent by your side who is willing to tell you the truth about your asking price aspirations, even more so.  

If you need any help or advice, contact any one of our 5 branches.  


Source:
Estate Agency Today Market growing, but only just, says ONS  
TwentyEA Property & Homemover Q1 Report
Rightmove April House Price Index