UK House Prices Stagnant in March with London Facing Challenges

House prices in the UK did not change in March 2025. The market stayed still after a small rise in February. This pause happens while regions show different work. London shows low growth compared to the rest of the country.

Nationwide’s Findings on House Prices

Nationwide Building Society finds that UK homes cost on average £271,316 in March. Prices did not move from February. The price jump in February was 0.4%. Over a year, prices grew 3.9%. Yet, regions differ. Northern Ireland saw a 13.5% rise. Scotland and Wales increased by 3.9% and 3.6% in the year.

London grew only 1.9% after a 2% rise earlier. London still costs the most, at £529,369 per home. The low yearly gain worries some investors.

The Impact of the Stamp Duty Holiday

Sales picked up before a stamp duty holiday ended. Buyers acted fast before extra taxes came back at the end of March. This rush sped up the sale process. Removal companies had many calls before the deadline.

Robert Gardner, chief economist at Nationwide, said, "Market action is light now because buyers moved here to avoid extra tax. We see this pattern when stamp duty holidays close." After the holiday ended, new mortgage approvals fell, with February at a six-month low, according to the Bank of England.

Future Outlook for the Housing Market

Into spring and summer, some experts see growth in market action. Gardner points to strong household money, low job loss, higher real wages, and lower borrowing costs if the Bank of England cuts rates soon. Right now, some models see a 68% chance of a rate cut in May.

Tom Bill, head of UK residential research at Knight Frank, said, "Sales may pick up by summer. Yet, high borrowing costs may persist because of US trade moves and taxes on employer national insurance."

Price Trends Across Different Property Types

Semi-detached homes show some strength. They rose 4.8% year on year in the report. This fact matters to investors who look at house in multiple occupation (HMO) projects. Demand for these homes stays strong, even as city housing faces problems.

Conclusion

UK house prices stood still in March. London did not do well while other regions moved ahead. Stamp duty changes and the latest reports hint at a careful but hopeful view for the market. In summer, region differences may affect investor plans, especially for HMO properties.

Investors and buyers should watch these trends as they seek new paths in the UK housing market.

Sources

• Nationwide Building Society Nationwide UK House Price Index
• The Guardian News UK house prices stagnant in March as London struggles
• Bank of England Bank of England Statistical Releases
• Knight Frank UK Property Market Insights

This article uses simple links between ideas. It aims to give clear facts and a direct view of the evolving market.

Disclaimer: This article has been generated by AI based on the latest news from Google News sources. While we strive for accuracy, we recommend verifying key details from official reports.