House Price Index: March 2025 – Insights from Zoopla

As the UK market moves into 2025, Zoopla’s House Price Index shows clear trends. Many home buyers and property investors will read this report. More homes appear on the market. Sellers must set a sound price if they want to sell this year.

Key Market Trends

Moderate Price Inflation

The report shows that house price inflation is now 1.8% in February 2025. This rate is lower than 1.9% in the month before. The average house price is £267,500. This price is a bit higher than £267,200 in December 2024. Prices still rise compared to last year when there was a -0.2% drop.

Increased Supply Outpacing Demand

There are more homes listed on the market. The total number of homes for sale grows by 11% over the past year. Agreed sales grow by just 5%. This gap means buyers have more choice. Sellers must pick prices with care. Over 30% of yearly sales happen from March to May, as homes are in high supply during spring.

Regional Insights

Northern Regions vs. Southern Regions

A divide appears between the North and the South.

• Northern England and Scotland: In these areas, demand is higher than supply. In the North West, prices grow by 3%. In Scotland, they grow by 2.5%. In cities like Motherwell, prices rise by 4.3% and in Wigan by 3.8%. These regions attract buyers because homes are more affordable.
• Southern England: In the South, including London, house price inflation slows to about 1% or less. Supply spikes and buyer numbers drop. London sees a change of 3% lower than last year. Dartford and Ipswich see small price drops. New stamp duty costs affect buyer interest.

First-time Buyers in Focus

Many first-time buyers feel these changes, especially in London. Buyers in London hurry to purchase a home before stamp duty goes up on 1 April 2025. About 80% of such buyers in London face stamp duty costs. This situation cools the market in the capital. In the Midlands and South East, most buyers do not face these changes. This fact keeps buyer numbers steady.

Outlook for 2025: Slower Growth and Strategic Pricing

As the year continues, more agreed sales are expected. Analysts at Zoopla think price inflation may hold steady or fall as supply grows. Stamp duty changes add new costs. Homeowners and investors must get advice about local market conditions. Local estate agents can help set a good price and boost the chance of a sale.

Conclusion

The March 2025 House Price Index from Zoopla shows a changing UK property market. Buyers now have more choices as prices grow at a slower pace. Trends differ from region to region. Local market details help both will-be homeowners and investors make good choices. Setting a sound price remains key in a busy market.

For further details on the full House Price Index report, visit Zoopla’s dedicated platform.

References

• Zoopla House Price Index, March 2025
• UK Land Registry
• Current Mortgage Market Statistics
• Office for National Statistics – Average Earnings Data

For regular updates and in-depth analyses, check previous House Price Index reports on Zoopla.

Important: Market data can change fast. Stay informed with updated resources and revised indices to make the most of your property investment.