UK house prices rose at their fastest pace since the end of 2022 in the 12 months to March, according to official data published on Wednesday.
Average house prices increase by an annual 6.4%, the fastest increase since December 2022 and up from a 5.5% increase in February, the Office for National Statistics said.
The stamp duty change at the start of April encouraged purchasers to move ahead more quickly with their plans in March.
Nick Leeming, chairman of Jackson-Stops, commented: “The early months of 2025 have laid a strong foundation for the housing market, driven by rising demand and steady price growth. In March, buyers moved swiftly ahead of the impending Stamp Duty changes, fuelling a notable price uptick at the same time.
“Looking ahead, price growth is likely to be moderate, with regional variations continuing to shape local market dynamics. The true test for this year will be activity levels post-Stamp duty changes; sustained momentum could drive a buoyant summer, but without the same time pressure, price growth may soften.
“Encouragingly, across the Jackson-Stops network we are seeing robust activity levels, with demand outpacing supply in popular markets. In April alone, an average of five potential buyers were competing for every new listing, underscoring borrower’s continued commitment despite an everchanging economic situation.
“Now, the Government must reaffirm its pledge to deliver 1.5 million homes during this Parliament. Until this happens, the market cannot fully realign to meet the needs of both current and future buyers.”
Iain McKenzie, CEO of The Guild of Property Professionals, commented: “This latest ONS HPI data, showing an increase in average property prices, is certainly encouraging and aligns with the positive undercurrents we’ve been observing in the market. It’s clear that the recent Bank Rate cut to 4.25%, the fourth in under a year, and the subsequent fall in mortgage rates are beginning to make a tangible difference. For those with a good loan to value, sub-4% mortgage deals have become more widely available.
“However, while we welcome this price growth, we must view it within the context of a complex market. The anticipation of further rate cuts, potentially down to 3.75% by year-end, will continue to stimulate activity. Yet, we cannot ignore the subdued economic backdrop and ongoing geopolitical uncertainties which will likely ensure a more measured pace of growth for the remainder of the year.
“It’s also crucial to acknowledge that while we’ve seen a surge in sales prior to the stamp duty exemption ending, the market has since cooled slightly – a natural period of adjustment. Current stock levels remain at a 10-year high, which means that while sellers might feel buoyed by rising average prices, realistic pricing from the outset remains paramount to stand out and secure a successful sale in a competitive environment.”
The ONS also said that private-sector rents across Britain in April were 7.4% higher than in the same month last year, slowing from March’s 7.7% annual rise and the weakest increase in almost two years.
Tom Bill, head of UK residential research at Knight Frank commented, “Rental value growth is still stubbornly high due to robust demand and supply that is falling as more landlords leave the sector. The Renters’ Rights Bill was designed to benefit tenants but the risk is that it has the opposite effect by cutting supply and keeping rents at levels that remain historically high.”
Read the orginal article: https://propertyindustryeye.com/property-industry-reacts-to-latest-uk-house-price-data-12/
