UK House Prices Stagnate in March: London Faces Unique Challenges
In March 2025, the UK housing market stayed flat. House prices stayed at £271,316. In February, prices climbed 0.4%. The change covers different areas. London shows few signs of growth.
Regional Variations: Northern Ireland Surges, London Declines
Northern Ireland rose 13.5% last year. London fell to a 1.9% growth rate from 2% before. London still stays the most expensive place at an average of £529,369. In contrast, Northern Ireland averages £205,796. Many new buyers and investors now view it as a smart place to buy.
Nationwide Building Society explained a strong link between tax changes and market moves. A rush of buyers sped up deals before the tax break ended in March. This rush pushed up activity, and it seems the market may slow as buyers adjust.
The Impact of the Stamp Duty Holiday
The end of the stamp duty break has affected market moves. Many buyers moved quickly to get deals before the change. Removal companies worked hard as a result. With the tax rule reset, many buyers now face a larger tax cost.
Mortgage approvals dropped in February. They reached the lowest level in six months. A lower number of approvals hints that fewer deals will finish soon. Homebuyers now wait as the tax change shifts their plans.
Economic Underpinnings: Support for Homebuyers
Even with the slowdown, experts stay hopeful. The UK has low job loss, steady wage growth, and strong family budgets. Some expect the Bank of England to cut interest rates twice before the year ends. These shifts may help the market and build trust among buyers.
Tom Bill from Knight Frank said buyers should see plenty of homes soon. He explained that strong supplies may keep prices from rising too fast. Though the near term seems unsure, activity might pick up by summer.
Trends in Property Types
Data shows semi-detached houses climbed 4.8% in the past year. This jump marks a change in what buyers choose. The trend fits with wider moves in the market.
Conclusion
In summary, the UK housing market now moves at a standstill while different regions show different paths. London faces the slowest yearly growth. Northern Ireland, in contrast, grows fast and draws the interest of investors, especially those checking HMOs.
The end of the stamp duty break has had a big effect on the market. Current and future homebuyers must keep up with the changes. Over time, as economic facts hold strong, the number of buyers may rise slowly.
For more detailed insights into the UK property market, check the following sources:
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.
