The latest House Price Index from Rightmove shows that the housing market has remained steady through April, despite rising mortgage rates and continued global uncertainty caused by the war in Iran.
While mortgage affordability has become more challenging in recent weeks, buyers and sellers are still pressing ahead, and the spring market continues to show resilience.
Prices Continue to Rise, But More Slowly
Average asking prices increased by 0.8% (+£2,929) in April, bringing the national average to £373,971.
This marks the third consecutive month of modest price growth, following similar rises in February and March. However, it is still below the long-term average for April, showing that sellers are remaining cautious.
A major reason for this is supply. The number of homes for sale remains high, with stock levels 13% higher than in 2024 and only slightly behind last year’s levels. With more choice available, buyers are in a stronger position, and sellers must price competitively to stand out.
Mortgage Rates Have Jumped
One of the biggest changes this month has been mortgage rates.
The average two-year fixed mortgage rate has risen to 5.42%, up from 4.25% before the war in Iran began. This adds an average of around £235 per month to a typical new mortgage.
While this is clearly affecting affordability, buyer demand has remained relatively stable so far.
Demand is currently 7% lower than April last year, but that follows the same pattern seen in February and March. It’s also important to remember that 2025 was an unusually strong market, with many buyers rushing to complete before stamp duty changes.
Is 2026 Still a Good Year to Buy?
Despite higher mortgage rates, the answer is still yes.
Average earnings are up by 3.9% annually, while asking prices are actually down 0.9% year-on-year. Buyers are also benefiting from more flexible lending criteria and improved borrowing options following the Financial Conduct Authority’s review of lending rules.
First-time buyers in particular are showing resilience, with demand only 6% lower than last year, suggesting many are still determined to make their move.
Sales agreed are also holding up well, sitting just 3% behind this time last year.
What This Means Across Shropshire, Worcestershire & Herefordshire
Across our local markets in Shropshire, Worcestershire and Herefordshire, we’re seeing very similar conditions.
There is still strong activity, but buyers are understandably more price-conscious due to mortgage costs. At the same time, increased stock levels mean sellers need to be realistic from the outset.
Homes that are priced well and marketed strongly are still performing very well, but overpricing is being punished much more quickly.
Comment from Andrew Ainge, Sales Director at Nock Deighton
“We’re seeing a very balanced market across Shropshire, Worcestershire and Herefordshire. Buyers are still active, but they’re naturally more cautious because of higher mortgage rates and wider economic uncertainty.
Sellers who are realistic on price and proactive with presentation are achieving strong results, while buyers are benefiting from more choice and greater room to negotiate.
Despite the headlines, the market remains resilient, and for many people 2026 is still a very good time to move.”
— Andrew Ainge, Sales Director, Nock Deighton
The market is proving to be steady rather than spectacular, and that’s not necessarily a bad thing. For buyers, improved wages, flexible lending and more choice are creating opportunity, even with higher mortgage rates. For sellers, strategy is everything. Correct pricing, strong presentation and expert local advice are what will make the difference this spring.
If you’re considering a move in 2026, our team at Nock Deighton would be delighted to help.
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