UK house prices fell 0.5% in March, reversing February’s 0.3% rise and leaving the average property value at £3299,677, while annual growth slowed to 0.8%, according to Halifax.
For landlords, the more relevant part of the update sits beneath the national average. Northern Ireland again posted the strongest annual growth at 8.7%, Scotland rose 4.4% and the North East recorded 5% growth, while the South East and London both moved backwards. That regional split matters because it shapes where yields, refinancing decisions and future investor demand are likely to hold up best if mortgage costs stay higher for longer.
Northern markets hold up better as southern prices weaken
Halifax said Northern Ireland’s average home value reached £3224,809, with Scotland at £3222,716 and Wales up 1.6% to £3230,909. By contrast, the South East saw prices fall 1.9% over the year to £3383,573, while London dropped 1.2% to £3536,751.
Amanda Bryden, head of mortgages at Halifax, said: “The recent slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East.”
Nathan Emerson, chief executive of Propertymark, said: “We are at an important intersection where we must clearly acknowledge future challenges ahead.”
This follows Residential Landlord’s April analysis of the Bank of England’s warning on higher mortgage payments, as well as last week’s report showing a quarter of landlords still looking to sell. The latest Halifax figures suggest those funding pressures are not hitting every region equally, with cheaper northern markets proving more resilient than the South.
What March’s Halifax data means for landlords
For buy-to-let investors, this is not simply a story about a softer national market. It is a reminder that affordability still drives relative performance. Where borrowing costs bite hardest, price growth is stalling or reversing. Where entry prices remain lower and rental demand is firmer, values are holding up better.
That creates a practical warning for landlords with expansion plans. Assuming a broad national recovery could be expensive if mortgage rates remain sticky and southern markets stay subdued. Equally, investors in lower-priced regional markets may find the combination of steadier values and stronger rental economics still stacks up better than in prime southern locations.
Halifax’s latest house price index also points to a market that has not fallen apart despite geopolitical pressure. Prices are softer, but not collapsing. For landlords, that should support a more selective approach rather than a blanket retreat.
Opinion
The headline fall in March will grab attention, but the regional split is the bigger takeaway. Landlords who keep chasing southern capital growth may be looking in the wrong place, while investors focused on affordable regional markets still have a clearer route to workable returns. The market is not shutting down – it is separating winners from laggards.
