Minimal Immediate Impact of the Iran Conflict on the UK Property Market

In case you are wondering if we have noticed any signs of slowdown in the local property market due to the war in Iran, the answer is a firm no. We are still experiencing high numbersof enquiries from buyers, and vendors are still motivated to sell. Although the conflict involving Iran has created uncertainty in wider financial markets, there is currently little evidence that it has had a meaningful direct impact on the UK housing market. Property values and transaction levels are still being driven far more by domestic factors such as mortgage affordability, buyer demand, wage growth and the supply of homes coming to market. The latest official figures show that average UK house prices were still 2.4% higher year-on-year in December 2025, while residential transactions were running at around 100,000 in December 2025, which was 4.7% higher than a year earlier.

For buyers and sellers, that is an important distinction. While geopolitical events can influence oil prices, inflation expectations and general market sentiment, the housing market tends to respond more gradually and is shaped mainly by borrowing conditions within the UK. Mortgage support remains in place through the government-backed Mortgage Guarantee Scheme, which helps sustain the availability of 95% loan-to-value mortgages for buyers with smaller deposits. In practical terms, that means the market is still being supported by real domestic activity rather than reacting sharply to overseas events.

In short, the headlines may feel dramatic, but the underlying property data remains relatively steady. Unless international tensions begin to cause a prolonged rise in inflation or significantly alter UK interest rate expectations over time, there is little at present to suggest that the conflict itself is materially changing the outlook for buyers or sellers in the UK housing market.