Rightmove House Price Index: 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
The average price of property coming to the market for sale rises by 1.4% (+£5,312) this month to a new record of £377,182. This is the first monthly price record since May 2024, with asking prices and activity typically higher during the Spring season. In a sign of continuing market resilience, this month’s price increase is larger than the average April increase of 1.2%, despite the number of available homes for sale remaining at a 10-year high for the time of year. Whilst a seasonal increase in asking prices is a positive sign for the health of the market, new sellers need to be cautious of the high competition for buyers that they may face when setting their asking price. Rightmove’s research shows that homes that are priced realistically from the start of marketing, rather than reduced later, are more likely to find a buyer, and in less than half the time on average. Meanwhile, the latest snapshot of market activity suggests that the stamp duty increase in England on 1st April hasn’t deterred most movers going through the sales completion process, and that new buyers and sellers still feel confident to enter the market. Over the last few days, the effects of President Trump’s tariff announcements have been unfolding. It’s too early to tell what the repercussions may be on the UK property market, but one potential impact of the announcements is that mortgage rates could drop more quickly, boosting buyer affordability.
“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.” Colleen Babcock, property expert at Rightmove
Since the stamp duty increase, the level of agreed sales falling through has remained steady. This indicates that there has been no major pull-out from agreed deals by first-time buyers and home-movers who were unable to complete before the tax rise. The last-minute rush to complete sales from those who were fortunate enough to be able to beat the deadline, means that the queue of buyers waiting to complete their purchase has eased by nearly 24,000 or 4%. It’s the first time that this queue has dropped during the month of March since the pandemic in 2020, though it has now started to tick up again.
Overall, across the full month of March, new buyer demand was 5% higher than at the same time last year, and the number of new sellers coming to market was 4% higher. However these are overall averages, and some segments and sectors of the market are faring better than others. In particular, there is a North and South divide in both price and buyer demand trends. The majority of Midlands and Northern regions, as well as Wales and Scotland, are seeing above average increases in demand versus last year, and all have seen new price records this month. By contrast, the higher-priced South West and South East are seeing smaller increases in buyer demand and prices. London appears to be an outlier; despite being the only region with fewer buyers enquiring than at this time a year ago, average asking prices in London have also reached a new record this month, driven by inner London. With London typically being more exposed to the impacts of geopolitical tensions, as well as currently seeing weaker demand trends, we may see this price trend fall back.
The full impacts of President Trump’s tariffs will play out over the coming weeks and months. As it stands, if the Bank of England opts for further and faster rate cuts, starting in May, this could lead to mortgage rates reducing more quickly than anticipated. Average mortgage rates remain high, and the current average five-year fixed mortgage rate of 4.72% is only slightly lower than the average of this time last year, which was 4.84%.
“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
Experts’ views
“March was a very busy month, with more completions than in the post pandemic stamp duty holiday. Solicitors worked really hard to get so many movers through. April has started off as a busy month for us, with market appraisal requests, viewings and offers across all of our East and West Midlands offices. We haven’t seen a downturn in our activity yet due to the tariff situation, but we do expect some economic headwinds as a result. Indications are that with an expected reduction in mortgage rates over the summer we will see a stable market in the first half of the year. It remains a constant that correct pricing is absolutely key to a successful sale, anything overpriced will be overlooked by buyers.” Phill Sandbach, Director at John German in the Midlands
“We’ve seen confidence pick up in the market after a bit of a rocky March for us. It appears that some would-be-movers may have been holding back to see if last month’s Bank Rate decision and spring statement brought any good news for the housing market, but since then we have seen buyer activity and new listings pick up for the spring season. The market is certainly still price sensitive while supply remains high. Things are moving well when priced appropriately, and particularly popular homes can even go for above asking price. Naturally, those who may not be in a rush are testing the market with higher asking prices, in those cases viewing requests are far lower, indicating buyers are still price sensitive.” Alex Caddy, Manager at Clarkes Estate and Letting Agency in Dorset
You May Also Enjoy
New wave landlords: Under 35s driving property market by prioritising investment over homeownership
Is Your Real Estate Website Built to Sell? 6 Signs It’s Time for a Redesign
Zoopla reveals the fastest moving UK markets as over half of homes in England and Wales sell within two months of listing
UK house prices grow by 1.4% according to Rightmove
Rightmove House Price Index: New record asking price with resilient activity despite stamp duty increase
