Average UK house costs elevated by 3.5%, to £265,000, within the 12 months to April 2025. This annual development was down from 7% within the 12 months to March 2025.
As the newest Office for National Statistics information reveals, that is the first slowing of UK annual house price inflation since December 2023.
According to the ONS, this was attributable to a price fall between March 2025 and April 2025, which coincided with Stamp Duty Land Tax (SDLT) adjustments.
ONS maintains that the April 2025 SDLT adjustments led to briefly larger common house costs in March 2025 as a result of patrons have been motivated to finish purchases earlier than the adjustments got here into impact.
An analogous sample was noticed in autumn 2021, when volumes and common costs elevated earlier than the October 2021 SDLT adjustments.
On a regional foundation, common house costs elevated to £286,000 (3.0%) in England, £210,000 (5.3%) in Wales, and £191,000 (5.8%) in Scotland within the 12 months to April 2025.
Commenting on the newest figures Finova chief income officer, Chris Little, , stated: “The resilience in house costs, regardless of April’s stamp responsibility adjustments, displays the underlying power of the UK housing market. While we’d sometimes anticipate a post-tax break slowdown, demand has remained regular, supported by gathered financial savings and a continued urge for food from patrons.
“Looking forward, a lot will hinge on the tempo of rate of interest cuts, future revenue development, and inflation traits, with tomorrow’s Bank of England determination more likely to maintain regular however watched carefully for indicators of easing.”
Jackson-Stops chairman Nick Leeming stated latest price development mirrored sustained purchaser confidence, partly as a pure consequence of the surge in exercise forward of March’s Stamp Duty deadline. “However, cussed inflation is more likely to forestall mortgage charges from falling as shortly as hoped. Buyers are hesitant amid mounting family monetary pressures and wider financial uncertainty. On high of that, asking costs might want to replicate the present actuality the place provide is starting to outweigh demand. That stated, demand is anticipated to enhance later this yr as extra rate of interest cuts transfer onto the Bank of England’s radar.”
Foxton’s chief gross sales officer Jean Jameson stated: “After a robust Q1, May was a month of rebuilding – each by way of applicant numbers and vendor exercise. We’re inspired by the renewed engagement from sellers and patrons alike. It’s a gentle basis to construct on going into summer season.”
Richmond property company Antony Roberts head of gross sales Amy Reynolds stated that the modest uptick in property costs was to be anticipated on condition that the spring/summer season market is historically a time when individuals transfer and the market is at its busiest.
“Unfortunately, one other rate of interest lower this week is unlikely given the inflation figures, which is disappointing as a half-point lower would stimulate development.
“However, there’s nonetheless loads of cash and need to purchase within the core price ranges. Surprisingly, we’re seeing an increase in first-time purchaser exercise though the stamp responsibility vacation has ended. Many are receiving assist from household and are doubtless being pushed by the pressures within the rental market, the place demand far exceeds provide and rental listings have dropped sharply as landlords exit the sector.”
