The annual rate of house price growth remained steady in March at 3.9%, unchanged from February, according to the latest Nationwide house price index.
There was also no change in prices month-on-month, after taking account of seasonal effects.
House price growth steady across most regions in first quarter of 2025
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 up 4.9% year on year, outperforming southern England. The North West was the best performing English region, with prices up 5.9% year on year.
Southern England 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%.
Robert Gardner, Nationwide's chief economist, said: “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."
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, commented: “Property prices are being held in check due to affordability constraints, higher mortgage rates and cautious buyer sentiment.
“The stamp duty concession focused the minds of buyers, encouraging them to bring forward transactions. Higher borrowing costs and affordability pressures remain an issue and it will be interesting to see the reaction in the second quarter of the year with the concession no longer available.
“The approaching end of the stamp duty holiday brought a flurry of activity, which is being replaced with buyer demand for houses in the £1m to £2m range, as we would expect at this time of year in a more ’normal’ market.”
Jeremy Leaf, north London estate agent and former RICS residential chairman, said: “Latest figures from this consistently reliable snapshot of housing market activity reinforces what we have seen on the ground – the overwhelming majority of buyers and sellers who had decided to move are coming to terms with the loss of the stamp duty saving by trying to split higher costs between them.
"As a result, and with many sales brought forward, there will inevitably be fewer but more protracted transactions over the next few months. However, bearing in mind around a third of total annual stock is made available during March, April and May, prices are likely to soften, rather than correct, while that underlying strength and confidence in the market remains."
Jonathan Hopper, CEO of Garrington Property Finders, added: “With the distorting effects of the brief ‘stamp duty stampede’ over, property prices are once again being driven by the fundamentals of demand and supply.
“And the blunt truth is that demand is greater than supply in several parts of the UK where buyers perceive that they can get more for their money.
“Meanwhile in many more expensive, and often highly desirable, areas a flood of supply has given buyers huge choice and negotiating power - and this has kept price inflation down.
“This is why average prices in Northern Ireland surged seven times faster over the past year than they did in London. Within England, the north-south divide is getting wider with average prices in the north growing twice as fast as they are in the south.
“Prices will never equalise between the two but a subtle rebalancing is underway. Across much of the south we’re seeing a buyers’ market in which buyers can ask for, and achieve, discounts off the asking price and where sellers are having to price very competitively to get a look-in.
“With the exception of very rare or unique homes in the best postcodes, price rises in the south are set to remain modest as price-sensitive buyers, who are spoilt for choice, set the tempo.
“With mortgage interest rates forecast to come down slowly this year, buyers will have a little more leeway in their budgets. But with so much supply to pick from, price inflation could stay firmly in check.”
