UK house price growth slows to 1.8% amid spring surge – Zoopla

UK house price growth is cooling, dropping to 1.8% in February from 1.9% in January after a year of steady recovery, Zoopla reveals.

Its latest house price index found that the average home is now worth £267,500 — up £4,750 from last year.

There was also an 11% rise in homes listed for sale compared to 2024, paired with a modest 5% increase in sales agreed to highlight a strengthening buyers’ market.

The property platform says listings will increase as spring arrives, a period that typically sees nearly 30% of annual property launches between March and May.

Prices slowing not a concern

The firm’s executive director, Richard Donnell, said: “We expect the growth in sales agreed to continue rising at a steady pace over 2025 as more sellers, most of whom are also buyers, enter the market in the coming months.

“House price growth is set to moderate further as supply grows and the extra costs of stamp duty in England feed through into house prices.

“A slowing in house price growth is not a major concern although the market needs some growth in prices to encourage sellers to come to market and buyers to make realistic offers on homes for sale.”

He added: “There is plenty of demand for homes but also lots of choice.”

Regional house price rises

Across the UK, regional disparities are stark with the North West and Scotland enjoying robust price rises of 3% and 2.5% respectively, driven by strong demand and affordable values.

In contrast, southern England and London face stagnation or declines, with prices dipping in areas like Dartford (-0.8%).

The looming stamp duty hike from April, alongside static mortgage rates at 4.4% for a five-year fix, is curbing purchasing power, particularly in the capital where buyer interest has fallen 3%.

In London, 80% of first-time buyers will face higher tax bills post-April, exacerbating a ‘stamp duty hangover’.

Areas under price pressure

Second-home hotspots such as Truro and Torquay are also under pressure, with values dropping due to new double council tax rules set to affect 150 councils from April.

This policy is pushing more properties onto the market, amplifying supply in coastal regions.

Meanwhile, towns in the north and Scotland, like Wigan (3.8%) and Motherwell (4.3%), lead price growth, offering homes priced between £130,000 and £220,000 – well below the national average.

Reaction from the property sector

Matt Thompson, the head of sales at Chestertons, said: “Despite the recent rush of first-time buyers entering the market to beat the stamp duty deadline having slowed down, sellers anticipate a busy spring market.

“We have seen an increasing number of homeowners listing their property for sale in March which is currently creating a greater choice for house hunters.

“Still, with London having one of the most competitive property markets in the world, buyers are required to act fast and start their search as early as possible.”

Tom Bill, the head of UK residential research at Knight Frank, said: “Supply has been rising faster than demand this year, which has put downwards pressure on house prices.

“We expect demand to strengthen after April in line with normal seasonal patterns and as new rates of stamp duty create a level playing field for all buyers.

“That said, doubt remains over how quickly mortgage rates will fall, particularly if the Spring Statement isn’t well-received by financial markets and inflation stays stubbornly high due to the more adverse employer landscape from April.”

Toby Leek, the president of NAEA Propertymark and a practising estate agent, said: “It’s inevitable that the changes in stamp duty thresholds were going to push many buyers to enter the market, in some cases, quicker than they potentially would have liked.

“By doing this and by acting quickly on their next home, lots of people may have saved thousands in the process.

“However, we’re now likely to witness the return to normality on the tail end of this spike as the sense of urgency has gone for a lot of buyers.”