British house prices slid unexpectedly last month ​as economic uncertainty stemming from the ‌Iran war hurt buyer demand, mortgage lender Halifax has reported.

House prices fell by 0.5 per cent month-on-month ​during March, Halifax said, following a ​0.3 per cent increase in February.

A Reuters poll of ⁠economists had pointed to a 0.1 per cent ​increase.

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

Halifax said its house price ​index was up 0.8 per cent compared with March ​2025, against expectations for a 1.5 per cent annual increase.

“The ‌recent ⁠slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East,” said Amanda Bryden, head ​of mortgages ​at Halifax.

“Concerns ⁠about higher energy prices have pushed up inflation expectations, which ​in turn led to a ​rise ⁠in mortgage rates, reducing confidence that interest rates will be cut this year and ⁠dampening ​the initial momentum in ​the market seen at the start of the year.”