UK house price growth stalled in March, according to the latest figures from the Office for National Statistics, with annual growth easing sharply following stronger gains earlier in the year.
Average house prices were broadly unchanged in the 12 months to March, compared with annual growth of 1.7% recorded in February, marking the weakest rate of house price inflation since April 2024.
Meanwhile, rental inflation continued to edge higher, with average UK private rents rising by 3.5% in the year to April, up slightly from 3.4% in March, underlining the continued pressure facing tenants across the private rented sector.
Industry reaction:
Jason Tebb, president of OnTheMarket: “Property values were flat on an annual basis in April, with the average price unchanged from a year ago. Given all that has happened in the past 12 months, this resilience is quite remarkable, with prices kept in check by increased stock, more choice and continued affordability concerns.
Average prices conceal significant regional differences, with values in London continuing to contract by the greatest margin with a 2.1 per cent fall in the 12 months to March. This is mainly due to greater supply of stock and continued stretched affordability with prices considerably higher than other parts of the country.
Needs-based buyers are ploughing on with their transactions, while uncertainty created by the Middle East conflict is resulting in less-committed buyers adopting a more cautious ‘wait and see’ stance. Lenders continue to trim their mortgage rates, but there is still plenty of volatility in Swap rates, which influences mortgage pricing. While inflation dipped to 2.8 per cent in the year to April, given the ongoing conflict in Iran this downwards trend is unlikely to be sustained and is tempering market expectations of further base-rate reductions in the near future at least.”
Nick Leeming, chairman of Jackson-Stops: “The latest figures point to a housing market where price growth remains subdued, with affordability pressures and higher borrowing costs continuing to keep buyers highly price conscious.
“While demand remains present, buyers are approaching decisions more cautiously and are increasingly prepared to negotiate harder on pricing, particularly where properties are perceived to be overpriced or require additional investment. This is limiting upward pressure on values and, in some areas, contributing to modest price adjustments.
“Compared with this time last year, the market is operating with less urgency and greater emphasis on value. Stronger regional markets and well-positioned homes continue to perform steadily, but sellers are having to adapt to a more competitive and price-sensitive environment overall.
“Looking ahead, the direction of mortgage rates and wider economic confidence will remain central to market performance over the coming months. Recently sparked political uncertainty and fluctuations in financing costs are making conditions harder to predict, and we expect buyers to remain selective until there is greater clarity around the interest rate outlook.”
Richard Donnell, executive director of research at Zoopla: “The ONS index shows house price inflation has stalled – this is a as result of Budget uncertainty over the taxation of housing in the latter part of 2025 as it’s too early for the higher mortgage rates of recent weeks to hit price changes this quickly. Looking ahead we expect house price inflation to continue to increase as buyer activity increases with clear evidence of growing sales and increased first time buyer activity as household press ahead with buying decisions. The year ahead is on track for 1.2m housing sales, only slightly lower than last year.”
Iain McKenzie, CEO of The Guild of Property Professionals: “A modest softening in house prices reflects a market that is adjusting to ongoing economic uncertainty, rather than one facing any fundamental weakness. Encouragingly, activity levels remain relatively stable, with committed buyers and sellers still moving ahead despite wider geopolitical tensions and inflationary pressures.
“Buyer demand has eased slightly compared to last year, but the market remains far more resilient than many anticipated given the mortgage rate environment. Mortgage approvals are holding up well, transactions have increased month-on-month, and homes are still selling more quickly than they were earlier in the year.
“One of the biggest shifts we’re seeing is a return to a more price-sensitive market. With supply levels now at an 11-year high, buyers have greater choice and are negotiating more carefully, meaning realistic pricing has become absolutely critical to achieving a successful sale.
“There are still reasons for cautious optimism. The Bank of England’s decision to hold rates steady has provided some reassurance, while lenders continue to compete for business and affordability changes are supporting borrowing capacity for many households. As a result, we expect the market to remain stable overall, with needs-based movers continuing to underpin transaction levels throughout the year.”
Kevin Shaw, national sales managing director of LRG: “The figures point to a housing market that is keeping calm and carrying on.
“There is plenty going on in the wider economy. Inflation is down, largely because of the energy price cap, but petrol prices are higher, unemployment has edged up and the conflict in the Middle East is creating uncertainty. Some will call this the lull before the storm – but that is not what we are seeing on the ground.
“For the sales market, the fact that average house prices are essentially unchanged is not bad news – it is a sign of stability. A flat market is far healthier than a volatile one. If house prices are not moving significantly while wages are still rising, then in real terms property is becoming a little more affordable. That is good news, particularly for first-time buyers.
“The interest rate picture also looks more settled than it did a month ago. We are not expecting the Bank of England to move rates in the immediate term. A few weeks ago, a June rate rise looked likely, but now we are looking to a next rise in the autumn, if at all. That pause gives buyers and sellers some much needed certainty.
“Mortgage rates have continued to ebb and flow, but there is healthy competition among lenders and many good products available, particularly targeted at first-time buyers.
“From LRG’s perspective, April was strong and May has started positively. We are not seeing evidence of an imminent dip. Price remains the determining factor, buyers have more choice than they did, supply is healthier and vendors are showing flexibility, all of which creates a market in which deals can happen.
“There is never a perfect time to move. In the last decade, buyers and sellers have had to deal with Covid, Brexit, Ukraine and the ‘disastrous mini budget’ of 2022. The difference now is that people seem more philosophical. Rather than reacting to every headline, they are assessing their own circumstances and, where the numbers work, they are getting on with it.”
Nathan Emerson, CEO of Propertymark: “Static house prices point to a market that is stabilising after a prolonged period of economic uncertainty and higher borrowing costs.
“From an agent perspective, the market remains active but measured. Buyers are continuing to view and make offers, but they are negotiating more carefully and remain highly conscious of value and monthly mortgage costs.
“Sellers are increasingly having to price realistically to generate interest, and homes that are presented well and aligned to local market conditions are continuing to move. Stability may help rebuild confidence, particularly among first-time buyers who have been waiting for greater certainty around mortgage rates.”
Jonathan Hopper, CEO of Garrington Property Finders: “London is no longer an outlier. Average property prices fell into the red across England and Scotland in the weeks following the outbreak of war in the Middle East.
“Seven out of the nine English regions saw annual price growth turn negative in March. The biggest month-on-month drop was the 1.6% fall seen in the West Midlands, a region where prices had spent much of the previous year marching steadily upwards.
“The most striking reversal of fortune was in the North East. Annual price growth here stood at 3.6% in February, but by the end of March it had plunged to an annual drop of 1.2%.
“On an annual basis, prices are still falling faster in London than anywhere else. But the pace of the capital’s fall has slowed, from 3.3% in February to 2.1% in March.
“But as London’s price correction begins to ease, it could be just getting started elsewhere. Anywhere where the number of homes for sale exceeds the number of serious buyers could see prices slip in coming months.
“The imbalance in supply and demand, mixed with a hefty dose of war-related uncertainty, is forcing sellers to lower their price expectations and, in some cases, accept offers considerably below asking price.
“April saw a surge in new listings too. Buyers are truly spoilt for choice now, and this has created a buyer’s market in which buyers hold huge sway over both prices and transaction levels.
“For now, most deals are being done by those who need to move rather than just want to move, and by those who calculate that lower purchase prices more than offset higher borrowing costs.
“But as the volatility in the Gulf settles, the widespread rebalancing of prices will encourage more discretionary buyers that the time to strike is now. Lower prices are creating strong buying opportunities for the well-informed and agile.”
