Residential property costs within the UK dropped at their sharpest tempo in nearly 4 years following the top of the momentary lower to stamp obligation.
Between April and March, the typical UK property worth fell by 2.8% in worth to about £265,000, in accordance with the Workplace for Nationwide Statistics (ONS).
It’s the steepest decline in month-to-month home costs since July 2021 when home costs additionally fell after one other stamp obligation vacation completed in June that yr.
Of the English areas, annual home worth inflation was highest within the North East, the place costs elevated by 6.4% within the 12 months to April 2025. South West was the English area with the bottom annual inflation, the place costs elevated by 0.9% within the 12 months to April 2025.
Trade response:
Nick Leeming, chairman of Jackson-Stops, commented: “April’s worth progress displays sustained purchaser confidence, partly as a pure consequence of the surge in exercise forward of March’s Stamp Obligation deadline. Nonetheless, cussed inflation is prone to forestall mortgage charges from falling as shortly as hoped. Regionally, markets are marching to the beat of their very own drum. In lifestyle-led hotspots akin to Bury St. Edmunds, Cornwall, Exeter, Newmarket and Sevenoaks, Might noticed robust ranges of each completions and new directions.”
Jonathan Handford, managing director at Positive & Nation, mentioned: “Home costs edged larger in April, signalling a modest restoration in confidence regardless of ongoing affordability pressures and the scaling again of earlier market incentives. The rise suggests a housing market step by step regaining momentum, supported partly by a stabilising financial outlook and pent-up demand. Nonetheless, the adjustments to Stamp Obligation thresholds and persistently excessive mortgage charges proceed to problem first-time patrons, a lot of whom face steep deposit necessities and restricted borrowing capability.
Tom Invoice, head of UK residential analysis at Knight Frank, remarked: “The UK housing market continues to be in restoration mode after the stamp obligation cliff edge in April however costs are being stored firmly in verify by an overhang of provide. As exercise gathers momentum, what patrons and sellers might do with out this summer time is a re-run of final yr and a sport of ‘guess the tax rise’ forward of the autumn Price range. Rental worth progress is narrowing however 7% continues to be larger than it was within the seven years to April 2023, which is painful for a lot of tenants.”
The CEO of Yopa, Verona Frankish, mentioned: “A 2.7% month-to-month discount is sort of a major drop in bought worth values but it surely’s necessary to notice that in the present day’s figures relate to market efficiency in April, straight following the Stamp Obligation deadline on thirty first March. Due to this fact, what we’re seeing is a short market correction, most probably pushed by those that missed the deadline renegotiating as a way to account for the elevated value of buying.”
Jean Jameson, chief gross sales officer at Foxtons, famous: “After a powerful Q1, Might was a month of rebuilding – each by way of applicant numbers and vendor exercise. We’re inspired by the renewed engagement from sellers and patrons alike. It’s a gradual basis to construct on going into summer time.”
The director of Benham and Reeves, Marc von Grundherr, commented: “While the month-to-month fee of progress declined within the month following the Stamp Obligation deadline, we’ve nonetheless seen constructive motion on an annual foundation and this long-term measure is a much more correct view of total market well being. Within the months which have adopted, we’ve seen patrons and sellers push on with their plans to maneuver and so any preliminary discount in home costs because of the Stamp Obligation deadline could have been quick lived.”
Chris Little, chief income officer, Finova, mentioned: “The resilience in home costs, regardless of April’s Stamp Obligation adjustments, displays the underlying power of the UK housing market. Whereas we’d usually count on a post-tax break slowdown, demand has remained regular, supported by gathered financial savings and a continued urge for food from patrons.”
Richard Donnell, government director of analysis at Zoopla, commented: “The massive decline within the fee of home worth inflation displays the ending of the Stamp Obligation vacation which is now filtering by way of into slower worth progress. We count on the speed of worth progress to gradual additional over 2025 as homebuyers face a good selection of properties on the market which can assist a patrons market. House costs within the Midlands, northern England and Scotland will proceed to rise extra shortly than throughout southern England the place affordability is a drag on worth rises.”
Babek Ismayil, founder and CEO of homebuying platform OneDome, mentioned: “The newest home worth figures present a market persevering with to rebalance after the flurry attributable to Stamp Obligation adjustments. Annual progress of three.5% is modest by historic requirements, and the month-on-month cooling is a pure response to that front-loaded demand.”
Iain McKenzie, CEO of The Guild of Property Professionals, added: “The ONS knowledge exhibiting a moderation in annual home worth progress to three.5% comes as no shock and displays a predictable market rebalancing, relatively than a basic slowdown. The Stamp Obligation rush created a brief statistical blip. The market has now digested these adjustments and is returning to a powerful, sustainable rhythm. With regular demand, enhancing affordability, and extra selection for patrons, the UK housing market is on a really agency footing for the remainder of 2025.”
