UK house prices saw a slight slowdown in growth during April 2025, with the annual rate falling to 3.4 per cent from 3.9 per cent in March.
Prices decreased by 0.6 per cent month-on-month, according to the latest Nationwide House Price Index, released today. The average property price now stands at £270,752, down from £271,316 in March.
Experts suggest this cooling follows the changes to stamp duty that came into effect on April 1. Many buyers rushed to complete purchases in March to avoid additional tax obligations, creating a temporary lull in the market.
Despite this short-term softening, analysts remain optimistic about the housing market's prospects as summer approaches.
Property prices growth has slowed
GETTYNationwide's chief economist Robert Gardner explained the figures: "The softening in house price growth was to be expected, given the changes to stamp duty at the start of the month.
"Early indications suggest there was a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations."
Gardner noted that while the market may remain soft in the coming months, this follows a typical pattern after stamp duty holidays end.
Nationwide's data showed the monthly index fell to 539.3 in April from 542.4 in March, reflecting the seasonal adjustment in the housing market.
Director of Benham and Reeves Marc von Grundherr added: “A marginal decline in the rate of house price growth was to be expected given the recent stamp duty deadline, however, this is nothing more than a momentary pause for breath following a heightened sense of urgency to complete on the side of the nation’s homebuyers prior to April 1.
"Now that the dust has settled, we expect to see an increase in market activity over the coming months, as many buyers and sellers look to press on with their plans for the year.
"This will help to further cultivate a property market that has stood very firm, despite the wider economic headwinds that have blown fiercely in recent months.”
CEO of Yopa Verona Frankish offered similar analysis: "Stability has been key to the returning health of the UK property market and, whilst we may have seen a brief period of respite following the March stamp duty deadline, buyers continue to re-enter the market."
She pointed to "reductions to interest rates and a more settled mortgage landscape" as key factors, adding: "With another base rate cut looking likely this month, we expect market momentum will continue to build."
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More buyers could hit the market this summer
GETTYJonathan Samuels, CEO of Octane Capital, highlighted positive mortgage trends: "We've seen monthly mortgage approval numbers sit above the 60,000 threshold since January of last year, which demonstrates buyer confidence in the market."
Despite wider economic uncertainties, the outlook for the UK housing market remains positive.
Robert Gardner of Nationwide pointed out that "underlying conditions for potential home buyers in the UK remain supportive." He cited low unemployment, rising earnings in real terms, and strong household balance sheets as key factors.
The property pro also noted that "borrowing costs are likely to moderate a little if Bank Rate is lowered further in the coming quarters."
