According to a statement by mortgage lender Halifax on Wednesday, housing prices in the UK unexpectedly fell last month due to economic uncertainty stemming from the Iran war negatively affecting buyer demand.

Halifax stated that housing prices fell by 0.5% on a monthly basis in March, following a 0.3% increase in February.

In a survey conducted by Reuters with economists, a 0.1% increase was forecasted.

The survey contrasted with findings from rival ​mortgage lender Nationwide, which recorded a sharp increase in house prices in March.

Halifax announced that the housing price index increased by 0.8% compared to March 2025, falling short of the annual expectation of a 1.5% increase.

Halifax’s mortgage division head Amanda Bryden said, “The recent slowdown in the housing market reflects the broader uncertainty regarding the conflict in the Middle East.”

Concerns about high energy prices have raised inflation expectations; this has led to an increase in mortgage interest rates, reducing confidence that interest rates will be lowered this year and slowing the market momentum seen at the beginning of the year. “Concerns about high energy prices have raised inflation expectations, leading to an increase in mortgage interest rates, which has reduced confidence that interest rates will be cut this year and slowed the market momentum seen earlier in the year.”