UK Property Market: April 2025

Asking Prices Hit a Record High

April recorded a new high level of asking prices, reaching just over £377,000. This shows a growth of 1.4% from last month. Spring usually sees a rise in property prices due to the higher levels of market activity, however, this month’s growth is larger than the usual uplift we see.

Some regions have seen higher asking price growth than others due to the elevated levels of housing demand in those areas. Most of the Midlands and Northern regions, as well as Scotland and Wales, have all seen a new asking price record as a result of the above-average demand.

In contrast, the South-West and South-East areas have seen smaller rises in both demand and property prices. The slower growth is largely due to the current high prices, causing an affordability cap and encouraging people to move further North.

Demand Up By 5%

Compared to the 2024 UK property market, buyer demand is up 5%, and new sellers in the market are up by 4%. Since the start of the month, when the latest stamp duty rates were announced, there haven’t been any major impacts on the market. The number of sales and fall-throughs is roughly the same compared to when the old stamp duty rates were in place.

The spike in demand shows that market activity is on the rise, creating competitive prices, rates, and returns. This creates unmatched potential for investors and home buyers to capitalise on this market and boost ROI.

National Price Growth: North vs South

Over the last year, the average UK property market has seen a 1.6% price growth, showing an impressive increase compared to the 0.2% recorded a year ago. The average price of a house is currently lower than the asking price, standing at £268,000, an increase of over £4,000 over the last year.

House prices are beginning to slow across the UK property market, indicating a broad national trend. Despite the slowdown, the current rate of growth remains higher than it was at the same time last year in every region.

In southern England, where property prices are highest relative to household incomes, house price inflation remains subdued, staying below 1%. These regions face significant affordability challenges, which, combined with the recent withdrawal of the stamp duty holiday, have contributed to weakened buyer demand.

Conversely, stronger price growth continues in other parts of the UK. Annual house price increases range from 2.2% to 3% in the West Midlands, northern England, Wales, and Scotland. In these areas, lower average house prices and greater affordability mean there is a sustained demand.

UK Rents Outside London
Reach Record High in Q1 2025

Average rents across the UK, excluding London, have reached a new record of £1,349 per calendar month (pcm) during the first quarter of 2025. This represents a quarterly increase of 0.6% in the average advertised rent for newly listed rental properties.

The continued rise in rental prices reflects the ongoing supply and demand imbalances within the UK property market, with limited availability of rental stock in many areas contributing to upward pressure on prices.

Despite this, there are currently no significant indicators that the forthcoming Renters’ Rights Bill is influencing landlord or tenant behaviour in the short term. However, the bill is expected to have broader and longer-term implications for both parties as details around implementation and enforcement become clearer.

Mortgage Rates Are Expected to Drop

Rightmove has stated that mortgage rates could drop more quickly than was first predicted if the Bank of England reduced rates in May. Currently, rates are sitting at around 4-5%, with the average 2-year fixed rate being 4.72%. This is a slight drop from last year, but nothing major.

By the end of 2025, the base rate is predicted to be around 3.75% from the current 4.5%. The base rate cuts encourage lenders to lower mortgage rates, meaning that mortgage rates are likely to fall by the end of the year. It is hard to predict exactly what the mortgage rates could fall to, as they depend on other factors too. Some of which include inflation, other rates, and economic shocks.