House prices rose slightly in April, according to the latest Halifax house price index, with Scotland, Wales and Northern Ireland seeing the strongest annual price growth.
UK house prices rose by 0.3% in April, an increase of just under £900, Halifax said. This compares to a drop of 0.5% in March.
The annual growth rate also ticked up 3.2%, reaching its highest level so far this year. The typical UK property is now valued at £297,781.
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Amanda Bryden, head of mortgages at Halifax, says falling mortgage rates – with most lenders now offering sub-4% – coupled with positive earnings growth outpacing inflation, have helped to steadily improve affordability for many buyers, and support house prices.
“Overall, the market continues to show resilience despite a subdued economic environment and risks from geopolitical developments," she adds.
“There is likely to be a bump-up in consumer price inflation as household bills increase, but with further base rate cuts also expected, we anticipate a similar trend of modest price growth this year."
Regions showing fastest house price growth
Northern Ireland, Wales and Scotland recorded the strongest annual growth in house prices in the UK, with all three nations outpacing English regions.
Northern Ireland continues to post the highest level of annual property price inflation, rising by 8.1% in March. House prices now average £208,220.
Wales has the next fastest pace of annual house price growth, increasing to 4.7% last month. Here, the average house price now stands at £229,079.
Next comes Scotland, where property prices were up 4.6% year-on-year in April, to an average of £214,011.
In England, the North West shows the strongest growth, up 4.1% on an annual basis, with properties now costing an average of £240,975.
London continues to see more subdued annual house price growth of 1.3%. However the capital remains the most expensive market for properties in the UK, with an average price tag of £543,346.
The South West has the slowest rate of annual property price inflation, at 0.9%. The average house price is £304,451.
Housing market sales activity shows a mixed picture
UK home sales increased in March 2025, according to the latest HMRC monthly property transaction data.
Seasonally adjusted sales totalled 177,370, up by 61.7% from February’s figure of 109,700.
Quarterly transactions (January 2025 – March 2025) were around 31.6% higher than the preceding three months (October 2024 - December 2024).
Year-on-year seasonally adjusted transactions were 104.3% higher than March 2024.
However the RICS Residential Market Survey results for March 2025 shows a weakening in sales market activity.
New buyer enquiries slipped to a net balance reading of -32%, from -16% with agreed sales at -16%, from -13%.
New instructions returned a net balance of +6% (from +11%), its lowest reading since July 2024.
Mortgage approvals are also down. The latest Bank of England figures show the number of mortgages approved to finance house purchases fell in March 2025, by 1.2% to 64,309. Year-on-year the figure was 4.5% above March 2024.
Yet Jean Jameson, chief sales officer for Foxtons, says the estate agency has “seen an uplift in market activity on all fronts with respect to buyer enquiries, more sellers entering the market and more deals being negotiated”.
With another base rate reduction announced today, the outlook for the year ahead is “very positive”, he says.
“We’ve already seen many lenders reintroducing sub four percent mortgage products and, as greater mortgage affordability continues to fuel buyer market activity, the expectation is that house prices will climb further over the course of the year,” he adds.
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