House prices rose by 1.6% in the year to March 2025, compared to 0.2% a year earlier, but were down from 1.9% in December 2024, research from Zoopla revealed.
Zoopla’s House Price Index (HPI) found that buyer demand was 1% higher than last year but was tempered by the end of Stamp Duty relief, seasonal factors and ongoing economic uncertainty.
The supply of homes for sale was 12% higher than a year ago as more sellers entered the market, and sales agreed was 6% higher than last year.
Changes to mortgage affordability tests by lenders were expected to increase buying power by 15 to 20%, supporting the number of sales.
The trend was similar across the country, with price increases generally higher than a year ago in every region.
Sales agreed were up by double digits in Wales at 14%, and in the North West and North East, both up 10%.
Research found price growth remained under 1% in Southern England, where affordability was stretched.
In contrast, prices increased by between 2.2% and 3% in the West Midlands, northern regions, Wales and Scotland, and were 6% higher in Northern Ireland.
Additionally, research also showed that buyer demand had cooled in recent weeks, largely due to seasonal factors and uncertainty around the economy, as more homes came to market.
The average house price was £268,000, up £4,270 in the past year.
Earlier in 2025, buyer demand was running 10% ahead of the previous year as buyers moved before the end of Stamp Duty relief in England and Northern Ireland.
Demand had since softened and was close to last year’s level.
The number of homes for sale increased by 15% and the average estate agent had 34 homes for sale, up from 31 a year ago and much higher than the 15 seen in 2022 during the pandemic.
Richard Donnell, executive director – research at Zoopla, said: “Buyer demand has cooled in recent weeks as the supply of homes for sale continues to expand, slowing house price inflation. We expect continued growth in sales agreed, and slow but steady house price inflation.”
Toby Leek, president of NAEA Propertymark, said: “Improved 2-year mortgage products, greater borrowing power and sustained confidence are all playing key roles in helping raise the number of homes for sale and boost overall momentum within the housing market.
“Alongside the fact that the spring and summer months are proven to be historically busier times of the year, many of those who are waiting in the wings due to riding out current global economic uncertainty and the continued journey in interest rates cooling may be finding it difficult to resist the broad range of properties available coupled with their improved financial status.”
