The housing market continues to prove remarkably resilient, confounding analysts’ predictions of a sharp correction following the April 1st Stamp Duty rise. And, in a clear sign that buyers remain committed to their purchases, despite the increased tax burden, Rightmove is reporting that the number of agreed sales falling through has held steady.

In its latest market report, it also reveals average asking prices reached another record high of £377,182 in April – a monthly increase of 1.4% and an annual rise of 1.3%. This has come just as there has been a substantial increase in the supply of properties coming to the market.

The expanded choice, though, appears to be stimulating rather than dampening buyer interest, with agreed sales up by 6% when compared to the same period last year.

Colleen Babcock from Rightmove notes that: “We’ve seen our first price record in nearly a year, despite the number of homes for sale being at a decade-high. The increased choice seems to be bringing more movers into the market.”

The other major house price indices are also reporting positive annual growth, with Halifax’s showing prices rising by 0.3% in April and annual growth accelerating to 3.2%. Like Rightmove, Amanda Bryden from Halifax has noted that despite the rush of transactions before the stamp duty deadline, house prices have shown remarkable stability over the past six months.

And buyer confidence has been further boosted by the improving outlook for the base rate and falling mortgage costs. The Bank of England’s recent cut to 4.25% and expectations of further reductions throughout 2025 have prompted lenders to reduce rates.

At the same time, they have been relaxing lending criteria, boosting buyers’ spending power up and down the housing ladder (see this month’s finance section).

According to Rightmove, London is the only region bucking the trend, with fewer buyer enquiries than a year ago yet, however, asking prices in the capital have also reached a new record, which has been primarily driven by inner London.

HOUSE PRICES AND STATISTICS

Monthly growth currently ranges between -0.6% and +1.4%. There are similar variations in the annual figures, although all are showing house price gains, ranging from +1.3% to +5.4%.

Nationwide: Apr: Avg. price £270,75. Monthly change -0.6%. Annual change +3.4%.
Halifax: Apr: Avg. price £297,781. Monthly change +0.3%. Annual change +3.2%.
Land Registry (England): Feb: Avg. price £291,640. Monthly change +0.3%. Annual change +5.3%
Zoopla: Mar: Avg. price £267,400. Annual change +1.6%.
Rightmove: Apr: Avg. price £377,182. Monthly change +1.4%. Annual change +1.3% (asking prices)

RENTAL MARKET SHOWS SIGNS OF COOLING

The rental sector is experiencing its most prolonged cooling period since the pandemic, bringing welcome relief to tenants after years of steep increases. Rightmove reports that advertised rents outside London reached £1,349 per month in Q1 2025, with annual growth slowing to 4.5% – the smallest first-quarter rise in five years.

This cooling reflects an improving balance between supply and demand, with fellow portal Zoopla’s data showing available rental properties up 11% year-on-year while demand has decreased by 17%. Despite this rebalancing, competition remains strong, with approximately 12-13 renters pursuing each available property.

Wide regional variations continue across the UK rental market. Growth is slowing most notably in major cities, while more affordable satellite towns continue to see stronger price increases. London remains the most expensive region with average rents at £2,698 per month, though annual growth there has moderated to 2.5%.

HomeLet’s latest rental index confirms this nationwide slowdown, placing the average UK rent at £1,298 for April with annual growth of just 1.0%. This moderation is expected to continue through 2025, primarily constrained by affordability limits and the upcoming Renters’ Rights Bill.