Latest UK-focused news and updates.
In the UK, the housing market remains resilient despite ongoing geopolitical tensions, particularly the crisis in Iran. Recent data from Rightmove indicates that average asking prices for new homes increased by 0.8% in March, reaching £371,042. This uptick suggests that the housing sector has not yet felt the full impact of rising global oil prices, which are being driven by the crisis in Iran.
However, the mortgage market is experiencing significant challenges. The average lifespan of mortgages is reportedly declining, raising concerns among potential homebuyers and investors. This trend could be attributed to increasing interest rates, which are affecting affordability and market confidence.
In related economic news, rising oil prices are impacting various sectors, particularly airlines. Shares in major airlines, including British Airways' parent company IAG and easyJet, have fallen by approximately 2% as fuel costs escalate. Wizz Air has seen a more pronounced decline, dropping 4% on the FTSE 250 index.
In response to the rising cost of living, Labour leader Keir Starmer is set to announce measures aimed at supporting households struggling with increased energy prices. This initiative underscores the ongoing economic pressures faced by many UK residents.
As the situation evolves, the interplay between geopolitical events and domestic economic conditions will be crucial for both the housing market and broader financial stability in the UK.
Source: www.theguardian.com – https://www.theguardian.com/business/live/2026/mar/16/uk-mortgage-shelf-life-nosedives-interest-rates-oil-iran-inflation-news-updates