UK house prices have experienced their sharpest monthly decline in nearly four years, sparking widespread discussion across the property industry. This fall follows the end of a temporary stamp duty reduction, which had previously boosted market activity.
According to new data released by the Office for National Statistics (ONS), the average price of a home in the UK dropped by 2.8% between March and April 2025. This brought the average property value down to around £265,000.
This marks the most significant drop in monthly house prices since July 2021. That previous dip also came in the wake of another stamp duty holiday expiring, which had similarly inflated demand ahead of the deadline.
Despite the overall fall, regional disparities continue to show that not all parts of the UK are experiencing the same trends. Northern Ireland, for instance, has seen the most pronounced annual growth, with house prices rising by 9.5% year-on-year.
As of the end of the first quarter of 2025, the average property price in Northern Ireland stood at £185,037. Scotland also saw healthy growth, with average values rising by 5.8% to £191,061 over the same period.
Wales reported a 5.3% increase in annual house prices, bringing the average property value there to £210,077. These figures indicate that the devolved nations are somewhat outperforming the broader UK market.
In England, the North East led the way with the highest annual increase, recording 6.4% growth in property values. In contrast, the South West saw the lowest annual inflation at just 0.9% over the 12 months to April.
Industry leaders have weighed in with their views on the recent developments. Nick Leeming, chairman of Jackson-Stops, believes the April data still reflects buyer enthusiasm carried over from March’s stamp duty deadline.
Leeming also warned that persistent inflation may slow down reductions in mortgage rates, which many homebuyers had hoped would follow. He highlighted certain areas—such as Cornwall and Sevenoaks—where demand remains strong.
Jonathan Handford of Fine & Country echoed the sentiment, noting that April’s figures suggest a return of buyer confidence, despite ongoing financial pressures. He emphasised the role of a stabilising economy in supporting this recovery.
However, Handford also pointed out that changes to stamp duty and persistently high mortgage costs are continuing to challenge first-time buyers. Limited borrowing power and large deposit requirements are still barriers for many.
Tom Bill from Knight Frank commented that the housing market is still stabilising after the end of the stamp duty benefit. He expressed concerns about policy uncertainty in the months ahead, particularly in relation to the upcoming Budget.
Verona Frankish, CEO of Yopa, described April’s decline as a short-term correction. She suggested that many deals were renegotiated post-deadline to offset the added purchasing costs, temporarily lowering sale prices.
Jean Jameson of Foxtons said that following a strong first quarter, the market has seen steady rebuilding in terms of both buyer and vendor activity in May. She sees this as a healthy base for the summer property season.
Marc von Grundherr of Benham and Reeves stressed that despite April’s dip, the annual growth rate remains positive. He believes the drop was momentary and that both buyers and sellers remain motivated to move.
Finally, Richard Donnell of Zoopla and other experts believe the overall market is entering a phase of rebalancing, not decline. He expects prices in the Midlands and the North to remain stronger than in the South, where affordability is more stretched.
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