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 Westlag 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

Affordability trends

Price & activity trends

Regional trends

Overview

The average asking price for new property listings has risen by 1.4% (+£5,312) this month, reaching a new record high of £377,182. This is the first price record since May 2024, supported by strong seasonal activity in the Spring market. This monthly increase outpaces the typical April rise of 1.2%, signaling ongoing market resilience despite the number of available homes for sale being at a 10-year high for this time of year.

• High Seller Competition: With a large volume of homes available, new sellers are advised to price realistically from the outset. Rightmove data shows that accurately priced homes are more likely to sell — and in less than half the time — compared to those that need later reductions.

• Stamp Duty Impact Minimal: The 1st April stamp duty increase hasn’t significantly deterred buyers. The rate of sales falling through remains steady, showing that most buyers have proceeded with their purchases. A short-term rush to complete before the deadline reduced the queue of buyers by 24,000 (4%), the first March drop since the pandemic, though this is now starting to rise again.

• Rising Buyer & Seller Activity:

  • Buyer demand in March was 5% higher than the same time last year.

  • New listings from sellers rose by 4% year-on-year.

• Regional Differences:

  • The Midlands, North, Wales, and Scotland are seeing stronger demand and record-high prices.

  • The South West and South East show slower growth in both demand and pricing.

  • London stands out: despite having fewer buyer enquiries year-on-year, average asking prices hit a new high, driven by inner London activity. However, given London's sensitivity to geopolitical events, this upward trend may be short-lived.

Economic Outlook:

The longer-term effects of President Trump’s recent tariff announcements remain uncertain. However, one potential consequence is faster declines in mortgage rates, improving buyer affordability if the Bank of England opts for early rate cuts, possibly starting in May.

Currently, mortgage rates remain elevated:

• The average five-year fixed rate stands at 4.72%, only marginally below last year’s 4.84%.