12:01 AM, 29th May 2026, 1 minute ago
Average UK house prices returned to quarterly growth at the start of 2026, rising 0.3% to £305,092, research reveals.
Benham and Reeves’ Property Market Index Review, which combines data from Halifax, Nationwide and Rightmove recorded the increase in the first quarter after a 0.5% fall in Q4 2025.
Prices across the UK were 0.7% higher than in the first quarter of 2025.
London values also moved upwards during the quarter, reaching an average of £584,690, a rise of 0.6% after falls in both Q3 and Q4 last year.
Prices in the capital were, however, 0.5% lower than a year earlier.
Seller confidence falls
Marc von Grundherr, a director of Benham and Reeves, said: “The first quarter of 2026 has seen the property market regain some composure following the slight loss of momentum observed at the end of last year, with house prices across both the UK and London returning to positive quarterly growth.
“While the pace of recovery remains measured, the fact that values have stabilised and started to edge upward again demonstrates the underlying resilience of the market, particularly against what continues to be a backdrop of economic uncertainty and cautious consumer sentiment.”
He added: “At the same time, we’ve seen a notable shift in seller confidence across the wider UK market, with the gap between mortgage approved prices and asking prices widening once again after several quarters of improvement.
“This suggests that many sellers are feeling more optimistic about market conditions and are therefore becoming firmer in their pricing expectations.”
Asking price gap
The difference between mortgage-approved prices and asking prices widened across the UK during the first three months of the year.
Mortgage-approved house prices averaged £286,729, against an average asking price of £369,028, leaving a gap of 28.7%.
That compares with 27.9% in the final quarter of 2025, following three consecutive quarterly reductions.
In London, the same measure narrowed for a third successive quarter.
Mortgage-approved prices averaged £538,181 while asking prices stood at £680,687, producing a 26.5% gap, down from 26.9% in Q4 2025.
Completed sale prices
The gap between asking and completed sale prices widened with average sold prices of £268,387 in Q1, 27.3% below the average asking price of £369,028.
That compares with a 25.9% difference in the previous quarter.
In the capital, sold prices were 19.8% below asking prices, with the difference widening for a third quarter in succession.
Mr von Grundherr said: “The widening gap between asking prices and achieved sold prices indicates that buyers are still exercising caution and remain highly price sensitive.
“As a result, realistic pricing continues to be absolutely critical when it comes to securing a successful sale.”
