House Price Index Reports Slower Growth in Property Market – March 2025
We look at the property market in March 2025. A report from Zoopla shows clear trends that investors must note. The House Price Index shows a drop in house price growth. This change may affect buyers who want to invest in HMOs.
Key Trends in House Prices
The report shows house price growth now sits at 1.8%. Homes for sale grow fast while agreed sales do not. This shift makes the market more competitive for buyers and makes sellers act with care. In February 2025, the average house price in the UK was £267,500. Experts expect a 2.5% rise by the year’s end. Different home types show various increases. This report helps you see how these trends may affect your plans.
Breakdown of Property Types
The report lists average prices for different property types:
| Property Type | Average Price (Dec 2024) | Average Price (Jan 2025) | Average Price (Feb 2025) | Annual Price Change (£) | Annual Price Change (%) |
|---|---|---|---|---|---|
| All Property | £267,200 | £267,400 | £267,500 | £4,720 | 1.8% |
| Detached Houses | £448,700 | £448,600 | £449,100 | £5,310 | 1.2% |
| Flats | £191,700 | £191,600 | £191,400 | £210 | 0.1% |
| Semi-Detached Houses | £273,200 | £273,300 | £274,100 | £6,820 | 2.6% |
| Terraced Houses | £235,900 | £235,900 | £236,500 | £5,210 | 2.3% |
Some property types, like semi-detached and terraced houses, see higher gains. Others, like flats, show little change. This mix of shifts tells us more about the market trends.
The Supply and Demand Landscape
One key point is the gap between supply and demand. In southern England and in London, more homes come on the market. The number of homes listed increased by 11% compared to last year. This change gives buyers more room, and price growth stays at 1% or less.
In northern England and Scotland, more buyers are active. The number of buyers there grew by over 10% compared to last year. This difference in numbers gives varied chances for investors. Southern areas have many free listings while northern regions show higher price gains.
Impact of Stamp Duty Changes
Stamp duty rules will change on April 1, 2025. Many first-time buyers rushed to buy homes to avoid higher costs. In London, the count of first-time buyers fell by 3%. Here, 80% of first-time buyers now expect the new stamp duty costs after the cutoff. Investors must check how these new rules shift the market.
First-time buyers in London face limits. In other regions, longer exemptions hold more benefits. This shift may turn buyer attention from high-cost zones to areas with fairer prices.
What Lies Ahead: Forecast and Recommendations
As the market moves ahead, agreed sales may rise through 2025. More homes on the market and higher stamp duty keep house price growth low. Many buyers are active, and sellers must set smart prices to attract interest.
Investing in HMOs
If you plan to invest in HMOs, watch supply counts and price plans. Look first to areas with growing buyer numbers and steady rent levels. Northern regions show clear price gains. Local agents can help you set the right price and guide your plans. With sound advice, the current market can be full of rewards.
Summary
March 2025’s HPI report from Zoopla shows slow price growth in the UK property market. Different home types and regional trends change the scene. Investors must check each option with care. Sellers and buyers now set prices by looking at local demand.
Sources:
- Zoopla House Price Index
- UK House Prices – Office for National Statistics
- The Guardian: Property Market Trends 2025
- Nationwide House Price Index Monthly Review
Disclaimer: This article has been generated by AI based on the latest news from Google News sources. While we strive for accuracy, we recommend verifying key details from official reports.
