House Prices Reach New Record High

The average asking price for a home has now reached a new record high, standing at just over three hundred and seventy-seven thousand pounds. At the same time, the number of properties available for sale at this point in the year is the highest it has been in a decade, suggesting a healthy level of supply. Despite the recent rise in stamp duty, there appears to be little impact on people’s willingness to move, with many continuing with their plans undeterred.

Demand from prospective home-buyers has increased by 5% compared to the same period last year, while the number of new sellers entering the market has also risen by 4%. These trends suggest that market activity is gathering pace as spring progresses. Furthermore, mortgage rates could fall more quickly than previously expected if the Bank of England decides to reduce the Base Rate in May, which would provide a welcome boost to affordability for buyers.

As spring arrives and temperatures rise, the housing market typically becomes more active. This year, that trend is particularly pronounced, even as the temporary stamp duty relief ended at the beginning of April. Despite this shift, the latest data indicates that most people are still moving ahead with their plans to buy or sell homes.

In April 2025, the average asking price for properties coming to market increased by 1.4%, an uplift of £5,212, bringing the new national average to £377,182.

UK House Prices: April 2025

• April 2025: Average asking price of £377,182; and a monthly rise of 1.4%; annual increase of 1.3%.
• March 2025: Average asking price of £321,870; monthly rise of 1.1%; annual increase of 1%.

Why Are House Prices Rising?

The spring market often brings larger price increases, but this April’s jump exceeds typical seasonal trends. This is largely due to increased buyer activity, demand is up 5% on last year and more sellers are entering the market, with a 4% rise in new listings.

Colleen Babcock, RightMove’s property expert, explains:
“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 home-movers into the market, with both buyer demand and seller numbers up.”

With greater availability of homes than this time last year, competition between properties has intensified. This highlights the importance of accurate pricing. Overpriced homes are likely to deter interest, as buyers continue to be cautious about value. Research shows that homes priced correctly from the outset are more likely to secure a buyer, and often do so in less than half the time compared to those that require price reductions.

Stamp Duty Changes Have Not Slowed the Market

Although stamp duty thresholds changed in April, there has been no increase in the number of failed transactions. This suggests that both first-time buyers and existing homeowners are still determined to proceed with their purchases.

There was also a notable surge in completions just before the deadline, as many tried to finalise their sales in time. As a result, the number of buyers in the pipeline fell by 24,000 or 4%, marking the first time since 2020 that this backlog has declined in March. However, it is now beginning to rise again.

Regional Differences in Market Strength

While spring often brings strong activity, not all areas are performing equally. The Midlands, Northern England, Wales, and Scotland have all recorded buyer demand increases above the national average and reached new highs in asking prices. In contrast, the South West and South East traditionally more expensive regions have seen more modest increases.

London continues to be an outlier. Although it is the only region where buyer enquiries have dropped compared to last year, it has still set a new average price record. However, this could be short-lived due to London’s sensitivity to global events and weaker current buyer activity.

What’s Happening with Mortgage Rates?

Average mortgage rates remain just below 5%. The current average for a five-year fixed-rate mortgage is 4.7%, only slightly below the level seen a year ago.

If the Bank of England begins reducing the Base Rate in May, as some expect, mortgage rates may decline more swiftly than anticipated.