House prices increased by 0.3% in April, compared to a drop of 0.5% in March, the latest data from Halifax has revealed.
According to the lender’s April House Price Index, the average property price was £297,781, compared to £296,899 in March.
The annual rate of growth was recorded at 3.2%, up from 2.9% the previous month.
Northern Ireland, Wales and Scotland recorded the strongest annual growth in house prices in the UK, with all three nations outpacing English regions.
Northern Ireland continued to post the highest level of annual property price inflation, rising by 8.1% in March.
House prices in the region averaged at £208,220.
Wales boasted the next fastest pace of annual house price growth, increasing to 4.7% – with the average house price at £229,079.
Next was Scotland, where property prices were up 4.6% year-on-year in April, to an average of £214,011.
In England, the North West showed the strongest growth, up 4.1% on an annual basis, with properties costing an average of £240,975.
London continued to see more subdued annual house price growth of 1.3%.
However the capital remained the most expensive market for properties in the UK, with an average price tag of £543,346.
The South West had the slowest rate of annual property price inflation, at 0.9%.
The average house price was £304,451.
Amanda Bryden, head of mortgages at Halifax, said: “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.”
She added: “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.
“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.”
Reaction:
Nathan Emerson, CEO of Propertymark:
“This is a sign of sustained confidence in the UK’s housing market following a recent Stamp Duty surge in homebuying, and it should give those sellers hoping to take advantage of the traditionally busier spring and summer months motivation to move up the housing ladder.
“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.”
Rosie Hooper, chartered financial planner at Quilter Cheviot:
“Much of the recent volatility in transaction activity was the result of buyers rushing to complete purchases ahead of the Stamp Duty threshold changes that took effect in April.
“With the nil-rate band dropping from £250,000 to £125,000 and from £425,000 to £300,000 for first-time buyers March saw a sharp spike in completions as buyers raced to beat the deadline.
“Given the time it takes to finalise a property purchase, the April price data offers one of the clearest indications yet of how the market is functioning without the support of favourable stamp duty rates and it suggests a stabilisation rather than a significant drop.
“While activity may have surged earlier in the year, prices are now responding to a more subdued, post-incentive environment.
“That said, the outlook for borrowing costs has improved. Mortgage rates have edged lower in recent weeks, and attention now turns to the Bank of England’s interest rate decision this afternoon.
“A cut from 4.5% to 4.25% is widely expected, and any signal of further easing would provide a welcome boost to buyer sentiment as the year progresses.
“Still, affordability remains a fundamental constraint. High prices, elevated monthly repayments, and the upfront cost burden introduced by the stamp duty changes are continuing to weigh on first-time buyers and those seeking to move up the ladder. It’s a reminder that while rates may ease at the margins, structural issues in the housing market persist.
“Stamp Duty in particular continues to distort behaviour. Short-term tax incentives may boost transaction volumes temporarily, but they often leave behind a softer market once withdrawn.
“A longer-term review of the tax is overdue. Stamp Duty acts as a barrier to downsizing, discourages mobility, and glues up the housing chain particularly among older homeowners.
“Given that it contributes relatively little to Government revenues, there’s a strong case for rethinking whether it remains fit for purpose in today’s market.
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“As lenders cut mortgage rates and ease affordability criteria, borrowers are being given more options. With an increasing number of mortgages pegged at the psychologically important sub-4% level, there is less of a barrier for those who need to borrow to buy a home.
“Swap rates, which underpin the pricing of fixed-rate mortgages, continue to decline. A quarter-point rate cut from the Bank of England is expected today, which would further ease affordability, boost confidence and give buyers renewed confidence to make their move.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“The end of the stamp duty concession removed some of the urgency from the market. Some buyers accelerated purchases to beat the deadline while others adopted a ‘wait and see’ approach, hoping that with inflation largely under control, the Bank of England might cut interest rates again.
“The possibility of lower mortgage rates is keeping many buyers cautious, especially first-time buyers and second steppers.
“Sellers’ price expectations, particularly in prime and popular areas, are still often unrealistic compared to the offers buyers are willing to make. While there are committed buyers out there, we are finding that they are highly price-sensitive and many are no longer prepared to ‘overpay’ in areas where stock is low.
“Stock levels have improved compared with the end of last year but choice remains limited – particularly for good-quality family homes and well-located flats with outside space. In many parts of London there is more available property than a year ago but it’s a steady trickle rather than a surge as vendors finally accept that the post-pandemic frenzy is over.”
Iain Mckenzie, CEO of The Guild of Property Professionals:
“The latest Halifax data, indicating a continued positive momentum in house price growth, points towards a market that is not only maintaining its strength but also developing a sustainable and balanced footing.
“While a period of recalibration was expected after the significant, Stamp Duty-driven surge in March, this underlying resilience is encouraging.
“What’s crucial to highlight are the underlying positive trends supporting this. We’re seeing mortgage rates continue their welcome descent, with sub-4% deals now reappearing, which is a clear boost for buyer affordability and confidence.
“Despite persistent higher-than-expected inflation, the International Monetary Fund’s more optimistic outlook on interest rate cuts further underpins this positive sentiment.
“While buyer demand has understandably settled from the pre-deadline frenzy, it remains robustly above last year’s levels. More importantly, stock levels are up significantly, offering buyers greater choice, and agreed sales are also higher year-on-year.
“This increased activity is also reflected in faster selling times, with properties now moving much quicker than at the start of the year.
“The engine of the market – transactions – remains strong. We anticipate this trend of steady, and perhaps even slightly firmer, price growth to continue, potentially settling in the 1.5-2.5% range annually.
“Critically, sales volumes are on track for a healthy 5% uplift this year. This isn’t a market grinding to a halt; it’s a market demonstrating sustained activity and finding a sensible equilibrium, which is good news for both serious buyers and sellers in the long run.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“The market is baring its teeth. Even when buyers could no longer take advantage of the Stamp Duty holiday we found the overwhelming majority continued with their moves.
“With plenty of choice of flats in particular, prices have inevitably softened but have held up much better for houses where longer-term need is more apparent.
“Activity has been supported by strong employment, steady inflation and the southerly direction of travel for mortgage rates, even if cuts are made later rather than sooner than anticipated.”
Tomer Aboody, director of specialist lender MT Finance:
“The end of the Stamp Duty holiday in March saw a big push in transactions completing by the end of the month so that buyers could avoid the tax increase.
“We are now seeing the fallout, with transactions and mortgage approvals falling, although prices are holding steady, as buyers and sellers wait to see whether the anticipated interest rate cut comes.
“If it does, in turn this will hopefully encourage banks to reduce their mortgage rates, allowing affordability to ease and encouraging market activity.”
Jonathan Handford, managing director at national estate agent group Fine & Country:
“House prices ticked up in April, defying expectations of a slowdown after March’s Stamp Duty deadline frenzy and pointing to a market that’s proving more resilient than predicted.
“The end of the Stamp Duty relief window in England sparked a surge in completions — with mortgage lending hitting a four-year high in March. Early signs suggest that this confidence is holding, particularly as mortgage rates begin to ease.
“First-time buyers still face challenges, especially with the tax relief threshold now down £125,000, but falling inflation is providing a more encouraging backdrop. CPI dipped to 2.6% in March and markets are pricing in a potential base rate cut from the Bank of England, currently at 4.5%, possibly today.
“Lenders have already begun trimming fixed-rate deals, with more products dropping below 4%. Combined with the traditional spring uplift in activity, these shifts may be keeping buyers in the game, despite ongoing affordability pressures.
“The rebound in prices suggests the market may be finding its footing after a turbulent few months. With conditions slowly improving, it’s no longer just a question of catching a deadline, but of catching the right moment to move.”
Jason Tebb, president of OnTheMarket:
“While the Stamp Duty concession is out of the way, the housing market continues to shake off external economic concerns and demonstrate remarkable resilience.
“Recent base rate cuts have significantly boosted confidence and activity. With the stamp duty savings now behind us, a further rate reduction from the Bank of England today would be particularly timely, providing much-needed stimulus for the market as the year progresses.
“With property prices remaining relatively steady, this suggests that affordability is having an impact on the amount buyers are willing and/or able to pay.
“Sellers should seek advice from an experienced local agent to take into account local market nuances, ensuring their asking price reflects this.”
Babek Ismayil, founder and CEO, homebuying platform OneDome:
“This modest rise in house prices shouldn’t be mistaken for a full market recovery.
“We’re still seeing cracks beneath the surface, and this increase masks ongoing affordability pressures and the longer-term hangover from the Stamp Duty changes in April.
“The expected cut in interest rates by the Bank of England will support prices, but monetary policy alone won’t fix a broken system.
“What buyers need is a faster, simpler, more joined-up way to complete a purchase. Bringing estate agents, mortgage brokers and conveyancers together would help buyers connect better with all relevant parties.
“Only by updating the entire housebuying process will we turn short-term confidence into sustainable growth.”
Gareth Samples, CEO of The Property Franchise Group:
“The latest Halifax data, indicating a welcome uptick in house price growth, suggests the market is not just recalibrating after a period of intense activity, but also building positive momentum. A combination of factors, such as easing mortgage rates, rising stock levels, and the cooling of post-deadline buyer urgency, are creating a more balanced and now slightly strengthening environment for both buyers and sellers.
“Encouragingly, we’re still seeing strong underlying resilience in the market. Sales volumes remain robust, with a snapshot of the post-Stamp Duty market suggesting movers are carrying on and have adjusted to the tax rise. The level of agreed sales falling through remains steady, with most buyers who missed the deadline still proceeding.
“Crucially, there are more sales being agreed than a year ago, alongside an uptick in available homes, which is essential for long-term market health. This subtle strengthening in annual price growth a sign of the return to sustainable and confident market conditions.
“Looking ahead, we expect house pricing to stabilise, further supported by mortgage affordability gradually improving with falling rates and growing confidence around future base rate cuts.
“Time-to-sell metrics are also improving, with Rightmove data showing the average property took 64 days to sell in March, down significantly from January. With sales volumes on track for a potential 5% uplift in 2025, we remain optimistic about market performance through the summer and beyond.”
Jonathan Hopper, CEO of Garrington Property Finders:
“The morning after the night before has proved remarkably clear-headed. In March, the number of homes changing hands spiked by nearly two thirds compared to February, as thousands of buyers raced to complete their purchases before the Stamp Duty deadline.
“In April that supercharged period of activity fell away and we saw greater calm return to the market, with prices once again being determined by supply and demand.
“While many estate agents had a quiet start to the month, and the combination of good weather and the Easter weekend meant few saw their phones ringing off the hook, buyer enquiries have picked up noticeably over the past two weeks.
“Buyer demand is being perked up by two factors – the sense that prices have stabilised in many areas, and the steadily falling cost of borrowing. With many mortgage lenders now offering interest rates that start with a three rather than a four, cheaper borrowing costs mean homes are slowly becoming more affordable.
“On the other side of the coin, there is a glut of supply for buyers to choose from. In some areas, estate agents have so many homes already on their books that they are encouraging sellers to reduce their asking price, and in some cases agents are even refusing to list homes where they feel the owner is asking for an unrealistic price.
“This is keeping the average pace of price growth low in London and the South West of England, where prices are being trimmed as second home owners sell up and some of those who moved to the region during the post-pandemic ‘race for space’ reassess their priorities.
“By contrast Northern Ireland, Wales and Scotland are all recording price growth above that in England as the balance between supply and demand is more even, and buyers are more willing to stretch their budgets as they see prices as being fair value.
“Many marketwatchers had feared that things would turn to tumbleweed once the Stamp Duty stampede was over, but the Halifax’s data shows the market has rebalanced and reset well, even if there are wide regional differences in price movements that make the national averages a little misleading.”
