Current State of the UK Property Market: A Look Ahead

Overview of the Property Market Trends

In March 2025, the UK property market shows active trends. Price changes come from shifts in stamp duty rules, mortgage rates, and regional price differences. Data from Rightmove shows the average home price rose by 1.1% this month. The typical home now costs £371,870. This rise shows the market coming back from past ups and downs and marks a 1% increase over earlier prices this year.

Buyers and homeowners ask how these changes hit their budgets. Mortgage calculators help them see how repayments affect spending, spot savings when switching deals, and check the benefits of extra payments.

Surge in Market Activity Ahead of Stamp Duty Changes

Market action grows ahead of new stamp duty rules set for 1 April 2025. The new rules lower the nil-rate band limits for first-time buyers and others, and many now face higher tax. Property expert Colleen Babcock at Rightmove said March normally has high activity. This time the stamp duty deadline pushes buyers to finish deals fast.

Rightmove data shows that agreed sales grew by 9% compared to last year. The number of listings is the highest seen since 2015. Many homes on sale help buyers since a larger supply tends to slow the climb in prices.

Mortgage Rates and Affordability Challenges

Market action stays high in popular areas, yet mortgage rates keep home buying tough. The average fixed-rate mortgage for five years now sits at 4.74%. This rate is lower than the peak of 6.11% in July 2024, though it is close to last year’s 4.84%. Mark Harris, chief of mortgage broker SPF Private Clients, notes that lower swap rates may bring more fixed mortgage deals suited to buyers.

In February, the Bank of England cut its Bank Rate to 4.5%. This drop could help borrowers even if rates remain high as prices continue to rise. Buyers and investors must watch economic news.

Regional Variations in Asking Prices

Different areas see different moves in asking prices. Rightmove shows Scotland’s prices rise by 4% a year. In the South of England, the growth is slower. London now costs an average of £695,885—a yearly rise of 1.3%—while the East of England averages £420,120, growing 1.2% each year. The North West and Yorkshire show stronger growth compared to the South East and South West.

Investors in Houses in Multiple Occupation should note these facts as local money matters and rent levels change.

Conclusion

In March 2025, many signs show an active UK property market. New stamp duty rules push buyers to act now, while a steady supply of homes helps ease price rises. Mortgage rates still challenge those who want to buy, so investors and future homeowners must use tools like mortgage calculators to track their finances and understand current trends.

Investors in HMOs should watch regional trends and check that their plans match local demand and price moves. The coming months will shape the market, and staying alert will help bring success.

Sources

• Rightmove Rightmove.co.uk
• Nationwide Nationwide.co.uk
• Halifax Halifax.co.uk
• Better.co.uk Better.co.uk

Your home may be repossessed if you do not keep up repayments on your mortgage.