UK house prices rise for the first time since January
05-11-2025
Pedro Goncalves · Finance Reporter, Yahoo Finance UK
UK house prices rose in April for the first time this year, buoyed by easing mortgage costs and steady buyer demand. Figures from lender Halifax show that house prices increased by 0.3% last month, reversing the 0.5% drop seen in March and marking the first gains since January.
The average UK property is now valued at £297,781, up from £296,899 in the previous month.
On an annual basis, prices rose by 3.2%, up from 2.9% in March — the fastest annual growth rate so far this year.
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Amanda Bryden, head of mortgages at Halifax, said: “UK house prices rose by 0.3% in March, an increase of just under £900. The annual growth rate also ticked up to 3.2%, reaching its highest level so far this year. The typical UK property is now valued at £297,781.”
Bryden attributed the rise in part to a flurry of activity earlier in the year as buyers sought to beat stamp duty changes.
“We know the stamp duty changes prompted a surge in transactions in the early part of this year, as buyers rushed to beat the tax-rise deadline. However, this didn't lead to a significant increase in property prices, with the last six months characterised by a stability in prices rarely seen since the pandemic,” she said.
Despite monthly fluctuations, prices have remained broadly flat over the past half-year — down by just £48 in total, according to Halifax.
“Mortgage rates have continued to fall, with most lenders now offering rates below 4%. Coupled with positive earnings growth that has outpaced broader inflation, these factors have helped to steadily improve affordability for many buyers,” Bryden said.
Looking ahead, she added: “Overall, the market continues to show resilience despite a subdued economic environment and risks from geopolitical developments. There is likely to be a bump-up in consumer price inflation as household bills increase, but with further base rate cuts also expected, we anticipate a similar trend of modest price growth this year."
Northern Ireland led the UK’s house price growth with an annual rise of 8.1%, pushing the average property price there to £208,220. Wales followed with prices up 4.7% year-on-year to an average of £229,079, while Scotland saw a 4.6% increase to £214,011.
Among the English regions, the North West posted the strongest performance, with house prices rising 4.1% annually to an average of £240,975.
London continued to see subdued growth, up just 1.3% annually. However, it remains the UK’s most expensive housing market, with an average property costing £543,346. The South West recorded the slowest annual price growth at 0.9%, with average prices standing at £304,451.
Nathan Emerson, CEO of Propertymark, said the figures highlight “sustained confidence in the UK’s housing market following a recent stamp duty surge in homebuying.”
“This should give those sellers hoping to take advantage of the traditionally busier spring and summer months motivation to move up the housing ladder,” he said. “There has been recent data showing confidence in the mortgage market is fragile, and other reports suggesting that mortgage rates are at their lowest level since 2022.
"Hopefully, the Bank of England can provide further clarity to aspiring homeowners when they meet later today, and if the conditions are right to reduce interest rates, then this should make mortgages more affordable.”
Professor Joe Nellis, economic adviser at MHA, the accountancy and advisory firm, and one of the creators of the Halifax House Price Index, said: "House prices fell again in April, with the Halifax House Price index increasing by 0.3% in April, following a 0.5% fall in March — it is likely that this was just a blip.
"Despite strong demand for home ownership, the UK continues to be plagued by an inadequate supply of housing. The government has committed to one of the most ambitious housebuilding programmes in recent memory — 1.5 million homes over the next five years — which would go some way to reversing climbing prices, but it remains to be seen whether this target can be met."
https://uk.finance.yahoo.com/