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According to the data, the average price of a residential property dropped by 0.6% month-on-month.
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*Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)
Robert Gardner, Nationwide’s chief economist, said: “April saw a slowing in UK house price growth to 3.4%, from 3.9% in March. House prices fell by 0.6% month on month, after taking account of seasonal effects.
“The softening in house price growth was to be expected, given the changes to stamp duty at the start of the month. Early indications suggest there was a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations.
“The market is likely to remain a little soft in the coming months, following the pattern typically observed following the end of stamp duty holidays. Nevertheless, activity is likely to pick up steadily as summer progresses, despite wider economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive.
Unemployment remains 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. Indeed, swap rates (which underpin fixed rate mortgage pricing) have moderated in recent weeks.
Industry reaction:
Amy Reynolds, head of sales at Antony Roberts, said: “The end of the stamp duty concession in March removed some of the urgency from the market. Some buyers accelerated purchases to beat the deadline but others simply dropped back into ‘wait and see’ mode, hoping that, with inflation now largely under control, the Bank of England might cut interest rates next month.
“The possibility of lower mortgage rates is keeping many buyers cautious, especially first-time buyers and mortgaged movers.
“We are finding that the London property market is caught between a rock and a hard place – sellers’ price expectations, particularly in prime and popular areas, are still unrealistic compared to the offers buyers are willing to make. While there are committed buyers out there, they are highly price-sensitive, and many are no longer prepared to ‘overpay’ just because stock levels are historically low.
“Best-in-class properties are still attracting strong competition and, in some cases, achieving excellent prices. Buyers continue to pay a premium for properties that are priced sensibly, presented well, and located in prime areas. The message is clear: those who price according to today’s market, rather than yesterday’s headlines, are finding success.”
Matt Thompson, head of sales at Chestertons, said: “A lot of property sales that would have happened in April were finalised in March instead as buyers were driven to beat the changes to Stamp Duty thresholds. In comparison, house hunters who entered the market in April were in less of a rush with some even pausing their search amid the Easter holidays. Sellers, on the other hand, remained motivated and we have seen a clear uplift in homeowners listing their property for sale in April year on year. We therefore expect market activity and particularly buyer demand to pick up in early May which will lead to a busier than usual summer market.”
Nathan Emerson, CEO of Propertymark, commented: “Despite economic uncertainty globally, it is encouraging to see house prices remain resilient month on month. This provides many aspiring home movers with a perfect opportunity to investigate the marketplace more robustly and potentially better negotiate their next steps on the property ladder.
“The housing market remains one of the many backbones of the UK economy, but with average house prices across the UK typically sitting at around seven times the average annual gross salary, the UK Government and devolved administrations need to make fulfilling their housing targets a priority to help even out long-standing demand versus supply issues.”
Jeremy Leaf, north London estate agent, remarked: “Not surprisingly, house prices have softened a little now the rush to take advantage of the stamp duty holiday has passed.
“However, most sellers have kept their properties on the market and with approximately four out of five also said to be buyers, activity has been maintained at a higher level than we perhaps dared to hope.
“Looking forward, we anticipate much the same although economic uncertainty will continue to reduce confidence the longer that any much-anticipated cut in interest rates is delayed.”
Iain McKenzie, CEO of The Guild of Property Professionals, stated: “The latest Nationwide HPI figures showing a slight cooling in house price growth come as little surprise and confirm the expected market recalibration following the Q1 stamp duty rush. As anticipated, the increase in housing supply appears to be outpacing immediate demand, naturally taking some steam out of the rapid price inflation we saw earlier in the year.
“This readjustment period is logical after the artificial deadline distortion. However, underlying buyer momentum hasn’t evaporated. Key positive drivers are emerging, such as increasingly competitive mortgage rates – potentially further spurred by wider economic factors prompting Bank of England action – are improving affordability and borrowing power. High rental costs, particularly in areas such as the North West, also continue to make purchasing an attractive long-term proposition for many.
While affordability pressures and regional variations certainly remain, the combination of more favourable mortgage deals, the typical Spring/Summer seasonal uplift in activity, and sustained buyer interest suggests the market is moving towards a more balanced, albeit potentially slower-paced, period rather than a sharp downturn.
“The current ‘steadying’ reflects a market finding its level post stamp duty threshold change, but with enough positive undercurrents to likely support activity and potentially modest growth moving forward, especially if confidence holds and interest rates continue their downward trajectory.”
Tom Bill, head of UK residential research at Knight Frank, said: “House prices have come under pressure since the start of the year as supply outpaced demand, with buyers hesitating due to the stamp duty cliff edge in April and wider mood of economic uncertainty. However, the turbulence caused by US trade tariffs has since put downwards pressure on mortgage rates, which, together with the better weather, will support demand. The risk is that inflationary pressures creep back into the system for reasons that include recent employer tax changes, which could mean the Bank of England slows the pace of rate cuts. Together with renewed speculation ahead of the autumn Budget, it could curb buyer numbers after the summer.”
Jonathan Handford, MD at Fine & Country, stated: “House price growth dipped in April, a sign that the market is beginning to feel the effects of tighter affordability and reduced stamp duty incentives.
“This cooling comes as no surprise, given that many buyers brought forward their purchases to beat the March threshold change, leaving a quieter pipeline in the immediate aftermath.
“The dip coincides with a broader easing of economic pressures. CPI inflation fell to 2.6% in March, down from 2.8% in February, edging closer to the Bank of England’s 2% target. While this offers some breathing room for households, underlying affordability issues remain a major hurdle, particularly for first-time buyers navigating higher borrowing costs and reduced government support.
“The Bank of England held the base rate steady at 4.5% in its latest meeting, but there is growing speculation that cuts could come as soon as May. That outlook is being shaped not only by domestic inflation data but also by global headwinds — including the potential disruption caused by changes to global trade. However, this could also prompt UK policymakers to act faster to support growth and ease lending conditions.
“Even so, challenges persist. In many high-cost areas, house prices remain out of reach for a significant share of aspiring buyers. Stricter lending rules and large deposit requirements continue to shut many out of the market, despite signs that broader financial conditions may improve.
“April’s slowdown reflects a natural rebalancing after a period of deadline-driven demand. But with inflation softening and rate cuts increasingly likely, the market could regain momentum later this year, provided affordability barriers are addressed.”
Verona Frankish, CEO of Yopa, commented: “Stability has been key to the returning health of the UK property market and, whilst we may have seen a brief period of respite following the March stamp duty deadline, buyers continue to re-enter the market, spurred by reductions to interest rates and a more settled mortgage landscape.
“With another base rate cut looking likely this month we expect market momentum will continue to build and any stagnation in the rate of house price growth will be short lived.”
Jason Tebb, president of OnTheMarket, added: “Although a number of buyers brought forward transactions to take advantage of the stamp duty concession, there is still plenty of activity in the market now this incentive is no longer available.
“Other inducements – such as interest rate reductions – are even more essential. 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. All eyes are on the Bank of England to see whether it will follow up with another cut next week – if it does, this will give added impetus in May and June, which have the potential to be busy months for the market.
“Affordability remains an ongoing concern with rates still higher than many borrowers have grown used to, combined with the high cost of living and other pressures. Lenders have been trimming mortgage rates in recent days and further action from the Bank of England should enable this trend to continue, giving buyers who rely on mortgages increased confidence to make their move.
“With more property stock on the market as one would expect at this time of year, average house prices are being held in check, although of course local markets and even individual properties can vary considerably. Buyers on the whole remain sensitive on price and keen to negotiate because of affordability pressures, so sellers should seek advice from local agents who really understand their market and price accordingly.”
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