According to the latest figures from Halifax, the typical home saw an increase in value of just under £900 in April. This marks a rise of 0.3 per cent in house prices last month, which means that on a year-on-year basis, the average property has increased by 3.2 per cent.

Although the increase was modest, it represents the highest level of annual growth recorded so far in 2025. The average property is now valued at £297,781, up from £296,899 in March, based on Halifax’s mortgage data.

There had been expectations that house prices might drop in April, following the surge in property purchases before the stamp duty rise at the start of the month. According to data from Nationwide Building Society, house prices actually fell by 0.6 per cent in April.

However, Halifax’s report indicates that house prices have remained relatively stable despite the surge in transactions, suggesting a more resilient market than initially anticipated.

Amanda Bryden, head of mortgages at Halifax, explained that the recent stamp duty changes led to a surge in transactions earlier this year, as buyers rushed to beat the tax rise deadline. However, she noted that this surge didn’t result in a significant increase in property prices.

Instead, she pointed out that the past six months have been characterised by an unusual level of stability in prices, which has been rare since the pandemic. While the market has cooled slightly since the rush, Bryden observed that buyer activity remains strong when compared to previous years.

Looking ahead, she predicts ‘modest’ price rises throughout the year, primarily driven by the decrease in mortgage rates. In recent weeks, mortgage rates have been falling, and with the Bank of England expected to cut interest rates three or four times this year, rather than just twice, Bryden expects this trend to continue.

The first of these rate cuts is expected today, with the central bank’s decision due at midday.

Amanda Bryden continued, saying, “Mortgage rates have continued to fall, with most lenders now offering rates below 4 per cent.” This decline in rates, she explained, has been an important factor in improving affordability for many buyers.

She also highlighted that positive earnings growth, which has outpaced broader inflation, has further helped to make housing more affordable. These factors combined have contributed to a steady improvement in the market for buyers.

Despite the ongoing challenges in the economic environment and the risks posed by geopolitical developments, Bryden emphasised that the housing market remains resilient.

Surveyors think house prices will fall  

While house prices have risen, according to Halifax, the latest survey by the Royal Institution of Chartered Surveyors (RICS) revealed the weakest outlook since mid-2023.

The RICS monthly survey, a closely-watched indicator, gauges the sentiment of its members and provides a snapshot of the property market across the country. It found that more RICS members expect house prices to decline over the coming months than those who anticipate a rise.

Many members also reported a decrease in buyer enquiries, with fewer sales being agreed upon compared to previous months.

Anthony Codling, head of European housing for investment bank RBC Capital Markets, noted, “We hadn’t expected house prices to rise in April, and the commentary from Halifax is at odds with the market report from RICS, which was also published today.”

He suggested that, perhaps, the reality is that house prices are stable rather than rising or falling, pointing out that the average price has only changed by £48 over the last six months.

Where are house prices rising most?  

Northern Ireland, Wales, and Scotland have recorded the strongest annual growth in house prices, according to Halifax. All three nations have outpaced the growth seen in English regions.

In Northern Ireland, house prices have increased by 8.1 per cent year-on-year, with the average price now standing at £208,220.

Wales has also seen a notable rise, with prices up by 4.7 per cent year-on-year. The average house price in Wales now sits at £229,079.

Scotland has experienced similar growth, with property prices rising by 4.6 per cent year-on-year in April. The average price in Scotland is now £214,011.

In England, the North West is currently experiencing the strongest market growth, with house prices rising by 4.1 per cent over the past year. Properties in the region now have an average cost of £240,975.

In contrast, London has seen a more modest increase of only 1.3 per cent year-on-year. Despite this, the capital still holds the title of the most expensive market, with an average price tag of £543,346.

The South West has experienced the slowest growth in house prices, according to Halifax, at just 0.9 per cent year-on-year. The average house price in the region now stands at £304,451.

Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, commented, “Sellers’ price expectations, particularly in prime and popular areas, are still often unrealistic compared to the offers buyers are willing to make.”

She continued, “While there are committed buyers out there, we are finding that they are highly price-sensitive, and many are no longer prepared to ‘overpay’ in areas where stock is low.”

Reynolds also noted that although stock levels have improved compared to the end of last year, choice remains limited—particularly for high-quality family homes and well-located flats with outdoor space.

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