UK House Prices hit a record high
April 2025 Market Insights
Rightmove has just released its latest update, and house prices have hit a new record. If you're thinking of buying or selling, here's what it all means – with insights from our team at Carpenter Surveyors to help you make sense of the figures.
Headline Stats for April
Average asking price: £377,182 – a new record high
Monthly increase: +1.4% or £5,312
Annual increase: +1.3%
Homes for sale: Highest number for this time of year in a decade
Buyer demand: Up 5% compared to last year
New sellers: Up 4% compared to last year
Despite a recent stamp duty increase, the housing market is still very much active. People are continuing with their moves, undeterred by the extra costs.
Why Are Prices Rising?
Typically, spring brings a seasonal uplift in house prices as more buyers and sellers enter the market. But this April’s rise is bigger than usual.
There’s a simple explanation: demand is up, and more sellers are listing homes. With more choice available, it might seem surprising that prices are still climbing – but many buyers are ready to move.
Rightmove’s property expert Colleen Babcock explains:
“We’ve seen our first price record in nearly a year, despite the number of homes for sale being at a decade-high. The increased choice seems to be bringing more home-movers into the market, with both buyer demand and seller numbers up.”
Selling? Pricing Matters More Than Ever
With so many homes on the market, pricing your property correctly is crucial. Overpricing can put buyers off, especially as they now have more options.
Colleen continues:
“The high number of homes available in the market right now means that buyers are likely to have plenty in their area to choose from, and an overpriced home will stick out for the wrong reasons.”
Homes priced right from the start tend to sell faster and often don’t need to be reduced later. Local estate agents know the market best – working closely with them will help you get it right.
Alex Caddy, Manager at Clarkes Estate and Letting Agency, adds:
“Things are moving well when priced appropriately, and particularly popular homes can even go for above asking price. Those who may not be in a rush are testing the market with higher asking prices. In those cases viewing requests are far lower, indicating buyers are still price sensitive.”
What About the Stamp Duty Change?
The recent stamp duty increase hasn't caused a slowdown. In fact, the number of sales falling through hasn’t gone up, showing buyers are still moving forward with their plans.
There was a last-minute rush before the deadline, but that backlog has already eased. In March, the number of buyers waiting to complete dropped by 4% (24,000 fewer transactions) – the first drop for this month since the pandemic.
Regional Market Differences
Spring tends to bring a nationwide boost, but some areas are doing better than others.
Strong growth: Midlands, North of England, Wales, and Scotland – all seeing record asking prices and buyer demand above the national average.
Slower growth: South East and South West – demand is still there, but price increases are more modest.
Phill Sandbach, Director at John German in the Midlands, says:
“March was a very busy month, with more completions than in the post-pandemic stamp duty holiday. Solicitors worked really hard to get so many movers through. April has started off as a busy month for us, with market appraisal requests, viewings and offers across all of our East and West Midlands offices.”
Interestingly, London is bucking the trend. It's the only region with fewer buyer enquiries than a year ago, yet asking prices are still at record levels. However, this may not last, as demand remains weaker and global issues could impact the capital more than other areas.
Where Are Mortgage Rates Heading?
At the moment, average mortgage rates are just under 5%. A five-year fixed rate is currently around 4.72%, which is similar to this time last year.
But there may be good news ahead. If the Bank of England cuts interest rates in May – as some are predicting – mortgage rates could drop faster than expected.
Colleen says:
“It’s difficult to predict what the next few months will bring, but if mortgage rates reduce more quickly, it would be a helpful boost to buyer affordability.”
Carpenter Surveyors’ Final Thoughts
This spring market is active, and momentum looks set to continue. The key takeaway? If you're selling, get your pricing right. If you're buying, keep an eye on mortgage rates, which could improve your options soon.
Need help navigating the market or arranging a survey before buying? Get in touch with Carpenter Surveyors – we’re here to help you move forward with confidence.