House Prices Down 2.7% In April As Stamp Duty Changes Begin To Bite

First Slowing Of Annual Inflation Since 2023

Tax overhaul takes heat out of market
Annual inflation halves to 3.5%
Average UK home worth £265,000

Average house prices fell 2.7% month-on-month in April as new nil rate bands for stamp duty kicked in at the beginning of the month, writes Jo Thornhill.

The figures from the Office for National Statistics (ONS), which uses Land Registry data based on completed sales, show prices up by 3.5% annually for the year to April. This is a marked fall compared to the 7% annual increase in March.

The ONS says it is the first slowing of annual house price inflation since December 2023. It ‘coincided with Stamp Duty Land Tax (SDLT) changes’ which came into force for England and Northern Ireland on 1 April. The reduction in the nil rate bands for stamp duty means many home buyers will pay more in tax.

House prices have risen the most in Northern Ireland, where they are up by 9.5% in the year to the end of Q1 2025 (end of March). The average home in the country is now worth £185,037.

Prices are up by 5.8% annually in Scotland, to an average value of £191,061, closely followed by an increase of 5.3% for Wales to £210,077.

Average values have risen by the slowest amount – by 3% in the year to April – in England, taking a typical home to a value of £286,327. The average home across the whole of the UK is now worth £265,000.

Detached properties have seen the biggest annual increases, rising by 5% in the year to April to an average value of £436,380 nationally. Flats rose by 0.6% during the same time to an average of £195,017.

Commenting on the ONS data, Amy Reynolds, head of sales at London estate agent Antony Roberts, said: “A modest uptick in prices is to be expected given that the spring/summer market is traditionally when people move and the market is at its busiest. Unfortunately, another interest rate cut this week is unlikely given today’s inflation figure, which is disappointing as a half-point cut would stimulate growth.

“However, there’s still plenty of money and desire to buy in the core price ranges. Surprisingly, we are seeing a rise in first-time buyer activity even though the stamp duty holiday has ended. Many are receiving help from family and are likely being driven by the pressures in the rental market, where demand far exceeds supply and rental listings have dropped sharply as landlords exit the sector.”

Nathan Emerson at estate agent trade body Propertymark said: “The first half of 2025 has proven very different from the expected trends we would normally witness within the housing market each year.

“We had the effect of stamp duty threshold changes across England and Northern Ireland completely alter consumer habits. The housing market witnessed a sizable uplift in both mortgage approvals and property transactions, as many people looked to complete on their purchase before the April deadline.

“As we progress further into the traditionally busy summer period, we are likely to see momentum regarding house prices. However, this will likely depend on consumer affordability and confidence.”

The government has announced the launch of a publicly-owned and taxpayer-funded National Housing Bank, to ‘turbo-charge’ its target of building 1.5 million new homes over the next five years.

The Housing Bank, a subsidiary of Homes England, the government’s housing agency, will be able to act in partnership with the private house building sector, offering up to £22bn in loans for development of new sites and projects.