New record asking price with resilient activity despite stamp duty increase
- The average price of property coming to market for sale rises by 1.4% (+£5,312) this month to a new record of £377,182. This is a larger-than-usual April price increase, despite a decade-high number of homes for sale for the time of year
- A snapshot of the post-stamp-duty-increase market suggests movers are carrying on and have adjusted to the tax rise:
- The level of agreed sales falling through remains steady, with most buyers who missed the deadline still proceeding
- The queue of buyers completing home moves has eased by nearly 24,000, as many successfully beat the deadline
- Mover activity remains resilient with new buyer demand up by 5% versus last year and the number of new sellers coming to market up by 4%. However, some segments and sectors of the market are performing more strongly than others:
- All Midlands and Northern regions are at new price records this month, while the South East & South West lag behind
- London has also hit a new price record, but this may be short-lived as it is more subject to global uncertainties
- The resilience of the British property market will be further tested by the impacts of President Trump’s tariffs on the UK economy over the coming weeks and months:
- Potential boost to buyer affordability if Bank of England moves to reduce the Bank Rate more quickly starting in May
+1.4% monthly average asking price increase, larger than is normal for April
Prices are 1.3% ahead of last year
New buyer demand is 5% ahead of the same period a year ago
National average asking price
Apr 2025
£377,182
Mar 2025
£371,870
MoM change
+1.4%
National average asking price by market sector (excluding inner London)
First time buyers
£228,551
MoM change
+0.3%
Second-steppers
£346,703
MoM change
+0.8%
Top of the ladder
£693,048
MoM change
+3.0%
“We’ve seen our first price record in nearly a year, despite the number of homes for sale being at a decade-high. The increased choice seems to be bringing more movers into the market, with both buyer and seller numbers up as the market remains resilient. Confidence from new sellers is a good sign for the overall health of the market, but they do need to be careful when setting their asking price. The high level of supply in the market right now means that buyers are likely to have plenty of homes in their area to choose from, and an overpriced home will stick out for the wrong reasons. Our research also shows that getting the price right the first time is key. Homes that don’t need a reduction in price are more likely to find a buyer, and to find that buyer in less than half the time.
“It’s important to remember that among records and national trends, Great Britain’s housing market is made up of thousands of diverse local markets, each uniquely responding to market changes and world events. London, for example, is likely to see greater knock-on effects from US tariffs than the rest of Great Britain, while Northern regions appear to be performing more strongly post-stamp duty rise. It’s difficult to predict what the next few months will bring, but if mortgage rates reduce more quickly, it would be a helpful boost to buyer affordability.”
Colleen Babcock, property expert at Rightmove