The Bank of England maintained its base rate at 3.75%, while the average five-year fixed mortgage rose to 5.09%, signalling renewed borrowing pressure after recent volatility.

London’s House Price Index showed a -1.0% YoY change to an average of £681,292, with UK transaction volumes reaching 94,680, suggesting a cautious cooling in overall market activity.

Asking prices moved 0.0%, while rents grew 1.1% YoY, sustaining modest yields even as consumer confidence fell to -19.

Overall, the March data indicate a wait phase in London’s property market as buyers adjust to higher financing costs.

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Disclaimer

This Market Watch is for informational purposes only and does not constitute financial or investment advice. Always seek independent professional guidance before making property decisions.

Key Market Signals

Indicator

Status

Direction

BoE Base Rate

3.75 % (unchanged since Feb)

↔️

5-Year Fixed Mortgage

5.09 % (+0.13 pp MoM)

⬆️

London Price Index (HPI)

–1.00 % YoY (Dec 2025)

⬇️

Transaction Volume

≈ 94,680 (UK Jan, provisional)

⬇️

Rental Growth

+1.10 % YoY (to Jan 2026)

⬆️

Asking Price

£681,292 (0.00 % MoM change)

↔️

Consumer Confidence

–19 (Feb 2026, –3 pts MoM)

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How These Numbers Affect You

A) Financing & Mortgage

Is getting a mortgage easier or more competitive now? Will my monthly payment drop?

The recent uptick in fixed rates indicates a tightening of lending margins following geopolitical shifts, despite a stable base rate.

First-Time Buyers: higher fixed costs may reduce immediate affordability, making monthly payment drops unlikely this month.

Investors: suggests a period of sensitivity for leveraged purchases as financing costs drift above the 5 % mark.

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If I already have a mortgage, is now a good time to remortgage or wait?

Current market movements suggest that the window for lower fixed rates has narrowed, with average products rising from 4.96 % to 5.09 % in early March.