UK house price growth remained unchanged in March at 3.9%, according to Nationwide’s latest figures, with prices flat month-on-month after seasonal adjustment.
The average UK house price now stands at £271,316, up slightly from £270,493 in February.
Robert Gardner, Nationwide’s chief economist, said: “UK house price growth remained stable in March at 3.9%, the same as in February. There was no change in prices month-on-month, after taking account of seasonal effects. These price trends are unsurprising, given the end of the stamp duty holiday at the end of March (transactions associated with mortgage approvals made in March, especially toward the end of the month, would be unlikely to complete before the deadline).”
He added: “The market is likely to remain a little soft in the coming months since activity will have been brought forward to avoid the additional tax obligations – a pattern typically observed in the wake of the end of stamp duty holidays. Nevertheless, activity is likely to pick up steadily as the summer progresses, despite wider economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive.”
Gardner pointed to low unemployment, rising real earnings, strong household balance sheets and expectations of falling interest rates as key supports for the market.
Quarterly data for Q1 2025 showed wide regional variation. Northern Ireland was the strongest performer with annual house price growth accelerating to 13.5%, more than double the next fastest region. The North West led in England, with prices up 5.9% year-on-year, while the West Midlands and Yorkshire & the Humber posted gains of 5.8% and 5.2% respectively.
In contrast, southern England continued to underperform. London was the weakest region in the UK with annual growth of just 1.9%, despite an average price of £529,369. East Anglia recorded a 2.1% increase, while the Outer South East and Outer Metropolitan regions saw modest rises of 3.0% and 2.8% respectively.
Across the nations, prices in England rose 3.3%, while Scotland and Wales posted increases of 3.9% and 3.6%. Northern Ireland’s annual growth was the strongest since 2021, with an average price of £205,796.
By property type, semi-detached houses recorded the highest annual price growth at 4.8%. Detached homes rose 4.5%, terraced properties 4.1%, while flats saw a smaller 2.3% increase.
The quarterly average UK house price was £270,867, with a seasonally adjusted quarterly increase of 1.2%.
Reaction
Nathan Emerson, CEO of Propertymark:
“The housing market has witnessed an extremely encouraging start to the year with sustained house price growth year on year. Although we now sit at the very start of the amended Stamp Duty thresholds for people across England and Northen Ireland, we remain optimistic to see strong market momentum across the entire UK, as we head towards the traditionally busy summer months.
“Although we are still seeing fluctuations within the rate of inflation, and a much needed cautious approach from the Bank of England regarding base rates, we are starting to see enormously welcome sub 4% mortgage deals offered by some lenders. As we hopefully witness potentially further base rate cuts across the year, it would be encouraging to see this translate into yet more competitive mortgage products being widely offered.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“Property prices are being held in check due to affordability constraints, higher mortgage rates and cautious buyer sentiment.“The stamp duty concession focused the minds of buyers, encouraging them to bring forward transactions. Higher borrowing costs and affordability pressures remain an issue and it will be interesting to see the reaction in the second quarter of the year with the concession no longer available.
“The approaching end of the stamp duty holiday brought a flurry of activity, which is being replaced with buyer demand for houses in the £1m to £2m range, as we would expect at this time of year in a more ’normal’ market.”
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“March has been a busy month for the housing market as one would expect but particularly so this year ahead of the window to make stamp duty savings closing.
“It was disappointing not to see an extension of this in the Chancellor’s Spring Statement or another alternative to support first-time buyers. Part of the additional cost is likely to be absorbed into house prices and form part of the negotiation process between vendors and buyers.
“Some incentive or inducement to get first-time buyers (and others) to come to market would give transaction numbers a boost, which are so vital for the overall health of the market. Further rate cuts would be welcome although the pace that which they are coming has unfortunately slowed.”
Jason Tebb, president of OnTheMarket:
“The housing market continues its strong start to the year as buyers and sellers brought forward transactions to take advantage of the stamp duty concession.
“With that incentive no longer available, other inducements – such as interest rate reductions – are more vital than ever. Two quarter-point base-rate cuts in the second half of last year, followed by one so far this year, have noticeably boosted sentiment and transactions.
“Affordability is an ongoing concern with rates still higher than many borrowers have grown used to, combined with the high cost of living and other pressures. With the markets expecting further rate reductions this year, this should give buyers who require mortgages increased confidence about taking the plunge.
“As more stock comes to market in order to take advantage of the traditionally busy spring market, values not running away with themselves. Buyers are sensitive on price and keen to negotiate, so sellers should seek advice and price accordingly, particularly as there are significant regional variations.”
Gareth Lewis, managing director of specialist lender MT Finance:
“The Nationwide figures are unsurprising as even though the stamp duty holiday has helped the market, it is still quite soft out there. Buyers are looking to get a deal on a property and the market is still a bit sluggish in terms of getting sales through.
“Those properties that people want to buy are in limited number and accordingly are priced at a premium while those in less desirable locations are sitting for a while because they are caught up in inflated pricing.
“It doesn’t help that there is no stimulus from buy-to-let investors either. Those landlords would normally buy smaller family homes which are easily rentable, and if they are not operating to the same degree in terms of purchasing, then there is a lack of stimulus for the wider housing market. This whole clamour to make it easier for people to buy a property is actually making it harder.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“Latest figures from this consistently reliable snapshot of housing market activity reinforces what we have seen on the ground – the overwhelming majority of buyers and sellers who had decided to move are coming to terms with the loss of the stamp duty saving by trying to split higher costs between them.
“As a result, and with many sales brought forward, there will inevitably be fewer but more protracted transactions over the next few months. However, bearing in mind around a third of total annual stock is made available during March, April and May, prices are likely to soften, rather than correct, while that underlying strength and confidence in the market remains.”
