"The first half of 2025 has proven very different from the expected trends we would normally witness within the housing market each year"
- Nathan Emerson - Propertymark
UK house prices rose by 3.5% in the 12 months to April 2025, according to provisional estimates from the Office for National Statistics (ONS), down from a revised 7.0% annual increase recorded in March.
The average price of a UK property stood at £265,000 in April, which is £9,000 higher than the same month in 2024. On a monthly basis, prices declined by 2.7% on a non-seasonally adjusted basis and by 2.8% once adjusted for seasonal factors.
Annual price growth was recorded across all UK nations. In England, the average house price rose by 3.0% to £286,000. Wales saw an increase of 5.3%, bringing the average to £210,000. In Scotland, prices climbed by 5.8% to £191,000. The average house price in Northern Ireland rose by 9.5% in the year to the first quarter of 2025, reaching £185,000.
Among the English regions, the North East recorded the strongest annual growth, with house prices rising by 6.4% over the year to April. The South West had the lowest annual increase, where prices rose by 0.9%.
The monthly drop in average UK house prices stands in contrast to the same period last year, when prices rose by 0.5% between March and April 2024.
The data highlights a slowdown in annual price growth, alongside a noticeable fall in month-on-month values, even when adjusted for seasonality.
Industry reactions
Tom Bill, head of UK residential research at Knight Frank, commented, “The UK housing market is still in recovery mode after the stamp duty cliff edge in April, but prices are being kept firmly in check by an overhang of supply.
"We don’t expect a rate cut before August, but the weak state of the UK economy is putting downward pressure on mortgage rates, which should support demand in the short term. As activity gathers momentum, what buyers and sellers could do without this summer is a re-run of last year and a game of ‘guess the tax rise’ ahead of the autumn Budget.”
Nathan Emerson, CEO of Propertymark, comments, “The first half of 2025 has proven very different from the expected trends we would normally witness within the housing market each year.
"We had the effect of Stamp Duty threshold changes across England and Northern Ireland completely alter consumer habits. The housing market witnessed a sizable uplift in both mortgage approvals and property transactions, as many people looked to complete on their house purchase, leading towards the start of April.
“As we progress further into the traditionally busy summer period, we are likely to see momentum regarding house prices; however, this will likely depend on consumer affordability and confidence. Many people will rightly be closely watching the Bank of England, as they make their next decision on the base rate tomorrow afternoon.”
Jean Jameson, Chief Sales Officer at Foxtons, said, “After a strong Q1, May was a month of rebuilding - both in terms of applicant numbers and vendor activity. We’re encouraged by the renewed engagement from sellers and buyers alike. It’s a steady foundation to build on going into summer.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, says, “The easing of core and headline CPI is likely to support expectations for further interest rate cuts later this year in August and November rather than this week.
“In the meantime, lenders have plenty of liquidity and are showing that they are keen to lend. Mortgage rates are steady on the whole, with some lenders continuing to reduce rates and ease criteria, helping borrowers take on bigger mortgages than they might have been able to just a short while ago. There are also signs of innovation with regard to helping first-time buyers in particular, which is good for the overall health of the housing market as it enables those further up the ladder to make their moves."
Richard Donnell, Executive Director of Research at Zoopla, comments: "Rental inflation is slowing as demand cools on lower migration and improved affordability for first-time buyers rather than any increase in rent supply. We expect the rate of rental inflation to slow in the coming months which will be welcome news for renters. Rental inflation for those taking new tenancies are rising at their slowest rate for four years.
"The big decline in the rate of house price inflation reflects the ending of the stamp duty holiday, which is now filtering through into slower price growth. We expect the rate of price growth to slow further over 2025 as home buyers face a large choice of homes for sale, which will support a buyers' market. Home prices in the Midlands, northern England and Scotland will continue to rise more quickly than across southern England, where affordability is a drag on price rises."
CEO of Yopa, Verona Frankish, commented, “A 2.7% monthly reduction is quite a significant drop in sold price values, but it’s important to note that today’s figures relate to market performance in April, directly following the stamp duty deadline on 31st March.
"Therefore, what we’re seeing is a brief market correction, most likely driven by those who missed the deadline renegotiating in order to account for the increased cost of purchasing.”
Director of Benham and Reeves, Marc von Grundherr, commented, “Whilst the monthly rate of growth declined in the month following the stamp duty deadline, we’ve still seen positive movement on an annual basis and this long term measure is a far more accurate view of overall market health.
"In the months that have followed, we’ve seen buyers and sellers push on with their plans to move and so any initial reduction in house prices as a result of the stamp duty deadline will have been short lived.”
