Spring 2025: UK House Prices

With the recent stamp duty change now behind us, it is interesting to see how this has affected the UK market. Some interesting key stats below demonstrate some key highlights;

• Average house price hits a new record of just over £377,000
• Number of homes for sale this time of year is at a decade high
• New buyer home demand is up 5%  compare to last year

The traditional spring upturn in the housing market due to better weather should see more buyers and sellers look to proceed.

 Why have house prices risen this month?

This April has seen a larger price increase than normal due to the demand being up by 5% compared to last year, while also home sellers coming to the market has increased by 4%.. The increase in choice of homes for sale and increased buyer demand points to resilience in the housing market, according to Colleen Babcock, property expert at Rightmove: “Confidence from new sellers is a good sign for the overall health of the market, but they do need to be careful when setting their asking price.

The last-minute rush to complete sales from those who were able to beat the deadline also means that the queue of buyers waiting to complete their purchase eased during March, the website said – marking the first time the queue has shortened during the month of March since the coronavirus pandemic in 2020.

 How has the stamp duty changes effected the market?

Since the recent stamp duty changes there has not been an increased number of houses falling through which shows first time buyers were still willing to purchase their home before the tax rise.

Each region has different home demands than others…

The average price in Scotland rose 2.6% year on year to £200,593, while in the North West of England prices are up 2.6% to an average of £266,408. In the North East prices are up 2.2% annually to an average of £194,213.

Annual growth has been slowest in London and the South West of England at 0.4% and 0.2% respectively in the year to April. The average asking price of a home in the South West now stands at £394,342, while London has the highest asking price of any region at £699,200.

What is happening with mortgage rates

Average mortgage rates are still just below 5%, with 4.72% being the average fixed 5 year mortgage. There is a growing belief that the Bank of England will cut its benchmark Bank Rate from its current 4.5% to 4.25% on 8 May, its next scheduled decision, with up to three further cuts expected during the year. This would trigger reduced mortgage rates and stimulate demand. Interest rates are likely to fall if the Bank feels the economy is facing recessionary threats as a result of an international trade war triggered by the imposition of import tariffs by the US and retaliatory action, primarily by China. Global market volatility, after US President Donald Trump announced tariffs, has fuelled analysts’ expectations that the Bank of England could make more base rate cuts in the months ahead.

Sources; Rightmove, Zoopla and On The Market