UK house prices rose by 3.5% year-on-year to an average of £265,000 in April 2025, according to the latest data from the Office for National Statistics (ONS).
But beneath this headline growth lies a temporary market dip triggered by stamp duty changes introduced on 1 April 2025.
The ONS reports that average house prices actually fell month-on-month between March and April, ending a four-month streak of rising inflation.
Experts say the fall was expected, as many of those buying a house rushed to complete deals in March before the SDLT deadline.
House prices affected by stamp duty deadline
The spike in sales before April’s stamp duty reform pushed March prices temporarily higher.
With new rules increasing tax on properties over £125,000 (excluding first-time buyers), April saw a significant pullback in activity - especially in England and Northern Ireland, where the changes took effect.
Verona Frankish, CEO of Yopa, said: “A 2.7% monthly reduction is quite a significant drop in sold price values, but it’s important to note that today’s figures relate to market performance in April, directly following the stamp duty deadline. What we’re seeing is a brief market correction.”
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Marc von Grundherr, Director at Benham and Reeves, echoed this, stating: “Whilst the monthly rate of growth declined in the month following the stamp duty deadline, we’ve still seen positive movement on an annual basis. This long-term measure is a far more accurate view of overall market health.”
House prices once again rose fastest in the North East(Image credit: ONS)
Buyer demand holds strong despite tax jitters
While April's dip may concern some, market professionals suggest this is a blip, not a bust.
The overall trajectory of house prices remains positive, supported by robust demand and a continued lack of housing supply.
Darrell Walker, Group Sales Director at Chetwood Bank, commented: “Today’s data was always going to be of interest. The month-on-month dip in house prices in April was to be expected, but it’s also important to remember that average prices are still up on last year. Strong buyer demand and limited supply mean the market remains in a strong position.”
He also warned of a potential pause in buyer activity: “Some prospective buyers are sitting tight and waiting for rates to come down before entering the market. That’s why lenders and brokers must work together to help combat inertia.”
What’s next for house prices and buyers?
House prices rose in the North West by 8.0%(Image credit: Getty Images)
As the Bank of England holds its base rate at 4.25%, many eyes are now on interest rates and their influence on both borrowing costs and house prices.
Paresh Raja, CEO of Market Financial Solutions, offered a longer-term view: “It was always going to take time for buyers and investors to adjust to the base rate rising from record lows to 17-year highs. But all signs suggest they have adapted. The steady rise in house prices underlines that demand is still there.”
Looking ahead, Raja added: “If we do see one or two more base rate cuts by the end of the year, the strong foundations are there for the market to really kick on.”
Although the April 2025 stamp duty changes caused a noticeable short-term price dip, experts agree that the UK housing market is still on solid ground.
With yearly house price growth at 3.5%, resilient demand, and expectations of interest rate easing, the outlook remains cautiously optimistic.
As always, keeping a close eye on house price trends and policy shifts will be key to navigating the road ahead.
News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.
