Residential property prices in the UK dropped at their sharpest pace in almost four years following the end of the temporary cut to stamp duty.
Between April and March, the average UK property price fell by 2.8% in value to about £265,000, according to the Office for National Statistics (ONS).
It is the steepest decline in monthly house prices since July 2021 when house prices also fell after another stamp duty holiday finished in June that year.
Of the English regions, annual house price inflation was highest in the North East, where prices increased by 6.4% in the 12 months to April 2025. South West was the English region with the lowest annual inflation, where prices increased by 0.9% in the 12 months to April 2025.
Industry reaction:
Nick Leeming, chairman of Jackson-Stops, commented: “April’s price growth reflects sustained buyer confidence, partly as a natural consequence of the surge in activity ahead of March’s Stamp Duty deadline. However, stubborn inflation is likely to prevent mortgage rates from falling as quickly as hoped. Regionally, markets are marching to the beat of their own drum. In lifestyle-led hotspots such as Bury St. Edmunds, Cornwall, Exeter, Newmarket and Sevenoaks, May saw strong levels of both completions and new instructions.”
Jonathan Handford, managing director at Fine & Country, said: “House prices edged higher in April, signalling a modest recovery in confidence despite ongoing affordability pressures and the scaling back of earlier market incentives. The increase suggests a housing market gradually regaining momentum, supported in part by a stabilising economic outlook and pent-up demand. However, the changes to Stamp Duty thresholds and persistently high mortgage rates continue to challenge first-time buyers, many of whom face steep deposit requirements and limited borrowing capacity.
Tom Bill, head of UK residential research at Knight Frank, remarked: “The UK housing market is still in recovery mode after the stamp duty cliff edge in April but prices are being kept firmly in check by an overhang of supply. As activity gathers momentum, what buyers and sellers could do without this summer is a re-run of last year and a game of ‘guess the tax rise’ ahead of the autumn Budget. Rental value growth is narrowing but 7% is still higher than it was in the seven years to April 2023, which is painful for many tenants.”
The CEO of Yopa, Verona Frankish, said: “A 2.7% monthly reduction is quite a significant drop in sold price values but it’s important to note that today’s figures relate to market performance in April, directly following the Stamp Duty deadline on 31st March. Therefore, what we’re seeing is a brief market correction, most likely driven by those who missed the deadline renegotiating in order to account for the increased cost of purchasing.”
Jean Jameson, chief sales officer at Foxtons, noted: “After a strong Q1, May was a month of rebuilding – both in terms of applicant numbers and vendor activity. We’re encouraged by the renewed engagement from sellers and buyers alike. It’s a steady foundation to build on going into summer.”
The director of Benham and Reeves, Marc von Grundherr, commented: “Whilst the monthly rate of growth declined in the month following the Stamp Duty deadline, we’ve still seen positive movement on an annual basis and this long-term measure is a far more accurate view of overall market health. In the months that have followed, we’ve seen buyers and sellers push on with their plans to move and so any initial reduction in house prices as a result of the Stamp Duty deadline will have been short lived.”
Chris Little, chief revenue officer, Finova, said: “The resilience in house prices, despite April’s Stamp Duty changes, reflects the underlying strength of the UK housing market. While we might typically expect a post-tax break slowdown, demand has remained steady, supported by accumulated savings and a continued appetite from buyers.”
Richard Donnell, executive director of research at Zoopla, commented: “The big decline in the rate of house price inflation reflects the ending of the Stamp Duty holiday which is now filtering through into slower price growth. We expect the rate of price growth to slow further over 2025 as homebuyers face a large choice of homes for sale which will support a buyers market. Home prices in the Midlands, northern England and Scotland will continue to rise more quickly than across southern England where affordability is a drag on price rises.”
Babek Ismayil, founder and CEO of homebuying platform OneDome, said: “The latest house price figures show a market continuing to rebalance after the flurry caused by Stamp Duty changes. Annual growth of 3.5% is modest by historical standards, and the month-on-month cooling is a natural response to that front-loaded demand.”
Iain McKenzie, CEO of The Guild of Property Professionals, added: “The ONS data showing a moderation in annual house price growth to 3.5% comes as no surprise and reflects a predictable market rebalancing, rather than a fundamental slowdown. The Stamp Duty rush created a temporary statistical blip. The market has now digested those changes and is returning to a strong, sustainable rhythm. With steady demand, improving affordability, and more choice for buyers, the UK housing market is on a very firm footing for the rest of 2025.”
