Iran turmoil set to hit UK housing market as hopes for growth dashed
The UK housing market is expected to be impacted by the turmoil in Iran, with experts warning that the conflict has already dented sentiment and curbed spending power. The average UK house price rose just 1.3 per cent to £268,000 in the 12 months to January, and rents are likely to keep rising due to the arrival of the Renter's Rights Act in May.
The UK housing market was sluggish last year, with little growth in prices. The average UK house price rose just 1.3 per cent to £268,000 in the 12 months to January. The Middle East conflict has hit the housing market, dashing hopes of a boost. Mortgage rates have spiked in response to an expected increase in inflation due to higher energy costs. Rents are likely to keep rising, with average UK monthly private rents increasing by 3.5 per cent to £1,374 in the 12 months to February 2026. The Renter's Rights Act in May may prompt more landlords to sell, keeping supply tight and financially squeezing tenants.
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