UK house price growth slips in April

The pace of UK house price increases slowed in April, with the annual growth rate dropping to 3.4% from 3.9% in March, Nationwide reveals.

Its latest data shows that property values fell by 0.6%, from March with the average home now priced at £270,752.

The slowdown follows adjustments to stamp duty introduced at the beginning of April, prompting a surge in transactions the previous month.

The housing market for 2025 is predicted to be ‘subdued’.

Price drop expected

The lender’s chief economist, Robert Gardner, said: “The softening in house price growth was to be expected, given the changes to stamp duty at the start of the month.

“Early indications suggest there was a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations.”

He added: “The market is likely to remain a little soft in the coming months, following the pattern typically observed following the end of stamp duty holidays.

“Nevertheless, activity is likely to pick up steadily as summer progresses, despite wider economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive.”

Reaction from the property sector

Matt Thompson, the head of sales at Chestertons, said: “A lot of property sales that would have happened in April were finalised in March instead as buyers were driven to beat the changes to Stamp Duty thresholds.

“In comparison, house hunters who entered the market in April were in less of a rush with some even pausing their search amid the Easter holidays.

“Sellers, on the other hand, remained motivated and we have seen a clear uplift in homeowners listing their property for sale in April year on year.”

Nathan Emerson, the chief executive of Propertymark, said: “Despite economic uncertainty globally, it is encouraging to see house prices remain resilient month on month.

“This provides many aspiring home movers with a perfect opportunity to investigate the marketplace more robustly and potentially better negotiate their next steps on the property ladder.

“The housing market remains one of the many backbones of the UK economy, but with average house prices across the UK typically sitting at around seven times the average annual gross salary, the UK Government and devolved administrations need to make fulfilling their housing targets a priority to help even out long-standing demand versus supply issues.”

Jason Tebb, the president of OnTheMarket, said: “Although a number of buyers brought forward transactions to take advantage of the stamp duty concession, there is still plenty of activity in the market now this incentive is no longer available.

“Other inducements – such as interest rate reductions – are even more essential.

“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.”

Tom Bill, the head of UK residential research at Knight Frank, said: “House prices have come under pressure since the start of the year as supply outpaced demand, with buyers hesitating due to the stamp duty cliff edge in April and wider mood of economic uncertainty.

“However, the turbulence caused by US trade tariffs has since put downwards pressure on mortgage rates, which, together with the better weather, will support demand.

“The risk is that inflationary pressures creep back into the system for reasons that include recent employer tax changes, which could mean the Bank of England slows the pace of rate cuts. Together with renewed speculation ahead of the autumn Budget, it could curb buyer numbers after the summer.”