UK house prices rise in March, but flat London market signals future slowdown

According to today’s UK House Price Index from HM Land Registry, UK average house prices rose 6.4% in the year to March 2025, continuing the upward trend in February 2025, which saw a 5.4% increase. The average price of property in the UK in March 2025 was valued at £271,000, 1.1% higher than February 2025.

The latest regional data continued to show significant regional variations in prices across the UK, with the North East leading the way with the highest annual growth of 14.3%. In contrast, London house prices only increased in the year to March by 0.8%. 

Stacy Eden, Head of Real Estate at RSM UK, comments: “Prices have increased significantly in the year to March 2025, particularly since the turn of the year driven by the stamp duty land tax (SDLT) bands reverting to a lower level. Property transactions doubled in March 2025 compared to March 2024, reaching levels not seen since March 2021 when another SDLT effective tax rise was introduced. It is therefore no surprise that RICS reported that buyer enquiries and agreed sales indicators moved deeper into negative territory.

“Mortgage approvals also declined slightly in March for the third month in a row, which alongside house prices in London experiencing negatively monthly growth, highlights affordability concerns in areas with the highest house prices. Furthermore the Bank of England Agents’ summary of business conditions reported a subdued sales market in Q1 – indicating potential buyers are uncertain about the economic environment.”

He added: “The upward trend in house prices will slow in 2025, but is unlikely to reverse given the shortage of residential properties in the UK, the ongoing supply and demand imbalance, and expected interest rate cuts. The government remains committed to delivering its annual housing target, yet even with planning reform recently announced, this still feels more like a pipe dream.”