House prices slump in April: ‘Supply is beginning to outweigh demand’
UK house prices fell in April as affordability issues constrain demand following the end of the stamp duty holiday in March.
House prices fell 2.7 per cent month on month in April, according to the Office for National Statistics (ONS).
Prices increased by 3.5 per cent to £265,000 in the 12 months to April 2025, down from seven per cent in the 12 months to March 2025.
The ONS pinned the monthly drop on an increase in payable tax on properties due to the end of the stamp duty holiday on March 31 for first-time buyers.
Sales volumes in March were “unusually high”, according to the statistics body, followed by low volumes in April 2025 in England and Northern Ireland.
An influx of properties, too, means that the UK housing market has tipped in favour of buyers interests in the last few months.
“We expect the rate of price growth to slow further over 2025 as home buyers face a large choice of homes for sale which will support a buyers market,” Richard Donnell, executive director of Research at Zoopla, said.
Recent Rightmove data found that buyer demand was up three per cent year on year in June, while the number of homes coming to the market rose 11 per cent year on year.
“Asking prices will need to reflect the current reality where supply is beginning to outweigh demand,” Nick Leeming, chair of Jackson-Stops, said.
“Stubborn inflation is likely to prevent mortgage rates from falling as quickly as hoped [and] buyers are hesitant amid mounting household financial pressures and wider economic uncertainty,” he added.
Eyes on interest rates
CEO of Propertymark, Nathan Emerson, said that future house price growth will “likely depend on consumer affordability and confidence”.
“Many people will rightly be closely watching the Bank of England, as they make their next decision on the base rate tomorrow afternoon,” he added.
Sticky inflation, however, means the bank is unlikely to cut rates in June.
Inflation remained at 3.4 per cent in June, pushed up by persistently high food and services prices.
“Interest rates will not fall as far and as fast as many had expected as inflation stays stubbornly high despite today’s small dip,” Jeremy Leaf, north London estate agent and a former RICS residential chairman, said.
Paresh Raja, CEO of Market Financial Solutions, said that the market remains in a “strong and stable” position and that “demand is still there”.
“If indeed we do see one or two more base rate cuts by the end of the year, the strong foundations are there for the market to really kick on from.
“All eyes remain on interest rates,” he added.