Steepest Monthly Drop Since 2021 as Stamp Duty Holiday Ends
UK house prices have fallen at their fastest pace in four years, with the average property price dropping by 2.8% between March and April 2025, according to the Office for National Statistics (ONS). The decline—the steepest since July 2021—follows the end of the temporary stamp duty cut, which had previously boosted market activity.
The average UK house price now stands at £265,000, with regional variations:
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North East saw the highest annual growth (6.4%)
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South West recorded the lowest increase (0.9%)
Industry Reaction: Is This a Temporary Correction or a Long-Term Trend?
Nick Leeming, Jackson-Stops Chairman
“April’s price dip reflects the post-stamp duty slowdown, but buyer confidence remains in key lifestyle markets like Cornwall, Exeter, and Sevenoaks.”
Jonathan Handford, Fine & Country MD
“Prices edged higher in April, showing resilience despite affordability pressures. However, first-time buyers still struggle with high mortgage rates and deposit requirements.”
Tom Bill, Knight Frank Head of Research
“The market is recovering from the stamp duty cliff edge, but oversupply is keeping prices in check. Another tax uncertainty in the autumn Budget could disrupt momentum.”
Verona Frankish, Yopa CEO
“The 2.7% drop is a correction—many buyers who missed the deadline renegotiated prices to offset higher stamp duty costs.”
Jean Jameson, Foxtons Chief Sales Officer
“After a strong Q1, May was about rebuilding activity. Seller and buyer engagement is steady, setting a solid foundation for summer.”
Marc von Grundherr, Benham and Reeves Director
“Monthly declines are expected post-stamp duty, but annual growth shows the market’s underlying strength.”
Chris Little, Finova Chief Revenue Officer
“Demand remains steady despite tax changes, supported by buyer savings and sustained appetite for homeownership.”
Richard Donnell, Zoopla Research Director
“Price growth will slow further in 2025 as buyers gain more choice, creating a buyer’s market. Northern regions will outperform the South.”
Babek Ismayil, OneDome CEO
“The market is rebalancing after the stamp duty rush. Modest annual growth (3.5%) reflects a natural cooling effect.”
Iain McKenzie, The Guild of Property Professionals CEO
“The slowdown is a rebalancing, not a crash. With steady demand and improving affordability, the market remains strong for 2025.”
What’s Next for the UK Housing Market?
While the post-stamp duty slump has caused a short-term dip, experts believe the market remains resilient. Factors like mortgage rates, supply levels, and future tax policies will shape whether this decline stabilizes or deepens.
For the latest UK property market trends, house price forecasts, and first-time buyer advice, stay tuned.
