House prices fell during March 2025

Mon 07 Apr 2025

UK average house prices were down by -0.5% in March, a drop of £1,575. Despite this, the annual growth rate remained steady at +2.8%, with the typical UK property now valued at £296,699 according to Halifax.

It was in London where the slowdown in house prices was the most pronounced, with annual growth dropping from +1.5% in February to +1.1% in March.

House prices rose in January as buyers rushed to beat the March Stamp Duty deadline. However, with those deals now completing, demand is returning to normal and new applications slowing.

Customers have completed more house sales in March than in January and February combined, including the busiest single day on record. Following this burst of activity, house prices, which remain near record highs, unsurprisingly fell back last month.

Looking ahead, potential buyers still face challenges from the new normal of higher borrowing costs, a limited supply of available properties to choose from, and an uncertain economic outlook.

With further base rate cuts anticipated alongside positive wage growth, mortgage affordability should continue to improve gradually, and therefore we still expect a modest rise in house prices this year.