The annual rate of house price growth remained stable in March at 3.9%, unchanged from February, according to the latest data from Nationwide.
Northern Ireland remained the top performing area, with annual price growth accelerating to 13.5%.
London was the weakest performing region, with 1.9% year-on-year rise.
| Headlines | Mar-24 | Feb-25 |
|---|---|---|
| Monthly Index* | 543.1 | 543.2 |
| Monthly Change* | 0.0% | 0.4% |
| Annual Change | 3.9% | 3.9% |
| Average Price
(not seasonally adjusted) |
£271,316 | £270,493 |
* Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)
Robert Gardner, Nationwide’s chief economist, said: “UK house price growth remained stable in March at 3.9%, the same as in February. There was no change in prices month-on-month, after taking account of seasonal effects. These price trends are unsurprising, given the end of the stamp duty holiday at the end of March (transactions associated with mortgage approvals made in March, especially toward the end of the month, would be unlikely to complete before the deadline).
“Indeed, the market is likely to remain a little soft in the coming months since activity will have been brought forward to avoid the additional tax obligations – a pattern typically observed in the wake of the end of stamp duty holidays.
“Nevertheless, activity is likely to pick up steadily as the summer progresses, despite wider economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive.
“The unemployment rate is low, earnings are rising at a healthy pace in real terms (i.e. after accounting for inflation), household balance sheets are strong and borrowing costs are likely to moderate a little if Bank Rate is lowered further in the coming quarters as we and most other analysts expect.
House price growth steady across most regions in first quarter of 2025
Nationwide’s regional house price indices are produced quarterly, with data for Q1 (the three months to March) indicating that annual house price growth in most regions remained broadly similar to last quarter.
Northern Ireland, the strongest performer, was a notable exception, with annual price growth accelerating to 13.5% more than double the pace of the next fastest outturn in Q1 and the highest recorded in the region since 2021, though similar to the robust rates of growth seen in border regions of Ireland in recent quarters. Scotland saw a 3.9% annual rise, while Wales was close behind at 3.6%.
Across England overall, prices were up 3.3% year-on-year, similar to the 3.1% annual rise seen last quarter. The north-south divide in house price performance persisted, with prices in Northern England (comprising North, North West, Yorkshire & The Humber, East Midlands and West Midlands) up 4.9% year on year, outperforming southern England. Indeed, the North West was the best performing English region, with prices up 5.9% year on year.
Southern England (South West, Outer South East, Outer Metropolitan, London and East Anglia) saw a more modest 2.5% year-on-year rise. The Outer South East was the best performing southern region with annual price growth of 3.0%. Meanwhile, London was the weakest performing region in the UK as a whole, with annual growth of 1.9%.
Property type update
Nationwide’s most recent data by property type reveals that semi-detached houses have seen the biggest percentage rise in prices over the last 12 months, with average prices up 4.8% year on year.
By contrast flats saw a slowing in annual price growth compared with last quarter, with a 2.3% rise. Detached properties recorded a 4.5% annual increase, while terraced properties saw a 4.1% year-on-year rise.”
Quarterly Regional House Prices – Q1 2025
Note that these figures are for the three months to March, therefore will show a different UK average price and annual percentage change to our monthly house price statistics.
Regions over the last 12 months
| Region | Average price
(Q1 2025) | Annual % chg this quarter | Annual % chg last quarter |
|---|---|---|---|
| N Ireland | £205,796 | 13.5% | 7.1% |
| North West | £221,896 | 5.9% | 5.5% |
| West Midlands | £249,629 | 5.8% | 4.7% |
| Yorks & The H | £211,496 | 5.2% | 4.4% |
| North | £165,984 | 4.7% | 5.9% |
| Scotland | £186,131 | 3.9% | 4.4% |
| Wales | £209,839 | 3.6% | 2.7% |
| Outer S East | £338,475 | 3.0% | 2.3% |
| Outer Met | £426,139 | 2.8% | 2.4% |
| South West | £305,410 | 2.8% | 2.7% |
| East Midlands | £235,279 | 2.5% | 4.4% |
| East Anglia | £274,400 | 2.1% | 0.5% |
| London | £529,369 | 1.9% | 2.0% |
| UK | £270,867 | 3.9% | 3.6% |
| UK Fact File (Q1 2025) | |
|---|---|
| Quarterly average UK house price | £270,867 |
| Annual percentage change | 3.9% |
| Quarterly change (seasonally adj.) | 1.2% |
| Most expensive region | London |
| Least expensive region | North |
| Strongest annual price change | N Ireland |
| Weakest annual price change | London |
Nations summary table
| Nations | Average price
(Q1 2025) | Annual % chg this quarter | Quarterly % chg |
|---|---|---|---|
| N Ireland | £205,796 | 13.5% | 5.0% |
| Scotland | £186,131 | 3.9% | 0.6% |
| Wales | £209,839 | 3.6% | 1.7% |
| England | £307,905 | 3.3% | 1.2% |
Industry reactions:
Iain McKenzie, CEO of The Guild of Property Professionals, commented: “The latest Nationwide HPI data confirms what we’ve seen in recent months – a market buoyed by strong buyer demand, increased sales activity, and an influx of new listings. The surge in transactions ahead of the Stamp Duty changes has undeniably driven momentum, supporting steady price growth.
“While some may have hoped for a last-minute policy shift, the new Stamp Duty thresholds are now in effect. Naturally, we expect a period of adjustment as buyers and sellers recalibrate their plans. However, with improving mortgage rates and continued earnings growth, the market remains well-placed for stability.
“The resilience of the housing sector is clear, and we anticipate continued good levels of activity throughout the year. The focus now must be on ensuring a balanced and sustainable market that supports buyers and sellers alike.”
Matt Thompson, head of sales at Chestertons, said: “Despite the rush of first-time buyers entering the market to beat the stamp duty deadline having slowed down, sellers anticipate a busy spring market. We have seen an increasing number of homeowners listing their property for sale in March which is currently creating a greater choice for house hunters. Still, with London having one of the most competitive property markets in the world, buyers are required to act fast and start their search as early as possible.”
Nathan Emerson, CEO of Propertymark, commented: “The housing market has witnessed an extremely encouraging start to the year with sustained house price growth year on year. Although we now sit at the very start of the amended Stamp Duty thresholds for people across England and Northen Ireland, we remain optimistic to see strong market momentum across the entire UK, as we head towards the traditionally busy summer months.
“Although we are still seeing fluctuations within the rate of inflation, and a much needed cautious approach from the Bank of England regarding base rates, we are starting to see enormously welcome sub 4 per cent mortgage deals offered by some lenders. As we hopefully witness potentially further base rate cuts across the year, it would be encouraging to see this translate into yet more competitive mortgage products being widely offered.”
Jason Tebb, president of OnTheMarket, said: “The housing market continues its strong start to the year as buyers and sellers brought forward transactions to take advantage of the stamp duty concession.
“With that incentive no longer available, other inducements – such as interest rate reductions – are more vital than ever. Two quarter-point base-rate cuts in the second half of last year, followed by one so far this year, have noticeably boosted sentiment and transactions.
“Affordability is an ongoing concern with rates still higher than many borrowers have grown used to, combined with the high cost of living and other pressures. With the markets expecting further rate reductions this year, this should give buyers who require mortgages increased confidence about taking the plunge.
“As more stock comes to market in order to take advantage of the traditionally busy spring market, values not running away with themselves. Buyers are sensitive on price and keen to negotiate, so sellers should seek advice and price accordingly, particularly as there are significant regional variations.”
Tom Bill, head of UK residential research at Knight Frank, added: “House prices were supported by the stamp duty deadline in the first quarter of the year but we expect a dip in activity as demand effectively resets from April. Buyers coming back into the market with a re-levelled playing field will find that supply is strong, which should keep downwards pressure on prices. Activity should recover by the summer but borrowing costs could be held higher for longer by erratic US trade policy and the inflationary impact of measures like the employer national insurance changes.”