UK house prices rebound as lenders cut mortgage rates and more Bank of England cuts expected
05-11-2025
UK house prices bounced back in April after a fall in March, according to the latest data from lender Halifax.
The average house price was £297,781, up 0.3% on the previous month, after a 0.5% decline last time.
Compared to a year ago, prices were up 3.2% in April, compared to 2.8% growth in March, while the first quarter of 2025 saw prices down by an average of 0.1%.
This was the highest level of annual growth seen so far this year, said Halifax's head of mortgages, Amanda Bryden.
"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.
"While the market has cooled slightly since this rush, buyer activity remains strong in comparison to recent years."
Mortgage rates have edged lower in recent weeks, with most lenders now offering rates below 4% as they anticipated an interest rate cut from the Bank of England, which is due to be announced today.
"Overall, the market continues to show resilience despite a subdued economic environment and risks from geopolitical developments," said Bryden.
"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."
Economist Matt Swannell at the EY ITEM Club said housing market data can be volatile from month to month, so he latched onto the trend over the last three months, where house prices fell by 0.1% as the market normalised in the run-up to the Stamp Duty deadline.
He expects a "soft patch" for the housing market as some purchases were accelerated to beat the change in stamp duty thresholds at the end of March, noting that there was a significant slowdown in activity in 2021 when thresholds last changed.
"However, this should be cushioned slightly by lower mortgage rates as financial markets are now expecting more interest rate cuts than they had been before global tariff announcements in March," Swannell said.
"Further cuts to interest rates should help prop up demand to an extent later in the year, but affordability challenges remain, and with some potential buyers possibly postponing house purchase decisions until the economic outlook appears less uncertain, we expect growth in prices and activity to be relatively subdued."
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