Average UK house prices increased by 3.5%, to £265,000, in the 12 months to April, down from 7.0% in the 12 months to March, the latest UK House Price Index from the Land Registry shows.
Average house prices increased by 3.0% in England, 5.3% in Wales, and 5.8% in Scotland over the year.
The North East was the English region with the highest house price inflation in the 12 months to April, at 6.4%. This was down from 15.3% in the 12 months to March.
Annual house price inflation was lowest in the South West, at 0.9%, down from 5.9% in the 12 months to March.
London was the only English region where the annual inflation rate was higher in April (3.3%) than in March.
Chris Little, chief revenue officer at Finova, said: “The resilience in house prices, despite April’s stamp duty changes, reflects the underlying strength of the UK housing market. While we might typically expect a post-tax break slowdown, demand has remained steady, supported by accumulated savings and a continued appetite from buyers. Looking ahead, much will hinge on the pace of interest rate cuts, future income growth, and inflation trends, with tomorrow’s Bank of England decision likely to hold steady but watched closely for signs of easing.”
“Swap rates have risen recently, adding pressure to lenders already navigating geopolitical jitters and market volatility. It’s a fragmented fixed-rate landscape: some lenders are absorbing the uncertainty, while others are adjusting pricing to manage demand and protect service levels. We may be heading into a more stable period for rates, but to maintain momentum, lenders and brokers must work closely to offer more flexible, forward-thinking products. Offset mortgages, joint ownership, and other innovative options will be crucial in helping buyers access the right deals in a more complex borrowing environment.”
Nick Leeming, chairman of Jackson-Stops, commented: “April’s price growth reflects sustained buyer confidence, partly as a natural consequence of the surge in activity ahead of March’s Stamp Duty deadline. However, stubborn inflation is likely to prevent mortgage rates from falling as quickly as hoped. Buyers are hesitant amid mounting household financial pressures and wider economic uncertainty. On top of that, asking prices will need to reflect the current reality where supply is beginning to outweigh demand. That said, demand is expected to improve later this year as more interest rate cuts move onto the Bank of England’s radar.
“Across the Jackson-Stops network we’re seeing a strong commitment from sellers, with a significant increase in new listings in April compared to two years ago. Regionally, markets are marching to the beat of their own drum. In lifestyle-led hotspots such as Bury St. Edmunds, Cornwall, Exeter, Newmarket and Sevenoaks, May saw strong levels of both completions and new instructions.
“With the Government’s Spending Review putting housing front and centre, there’s hope that the supply shortfall will finally be addressed. But the real question is how long it will take for policy promises to translate into bricks and mortar. Until then, house prices are likely to head in one direction.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, added: “A modest uptick in property prices is to be expected given that the spring/summer market is traditionally a time when people move and the market is at its busiest. Unfortunately, another interest rate cut this week is unlikely given the inflation figures, which is disappointing as a half-point cut would stimulate growth.
“However, there’s still plenty of money and desire to buy in the core price ranges. Surprisingly, we are seeing a rise in first-time buyer activity even though the stamp duty holiday has ended. Many are receiving help from family and are likely being driven by the pressures in the rental market, where demand far exceeds supply and rental listings have dropped sharply as landlords exit the sector."
