Property Market Update: March 2025

Welcome to the March edition of our Property Market Update. We've collated information from experts across the UK to provide you with a comprehensive view of the current market.

Market activity robust despite stamp duty changes looming

The UK property market shows resilience despite approaching Stamp Duty changes. Rightmove reports sales agreed up 15% compared to last year, while Zoopla shows a 10% year-on-year increase.

Nationwide notes market activity has remained resilient despite affordability challenges, with transactions in the second half of 2024 14% higher than 2023.

HMRC data shows UK residential transactions in January 2025 totaled 95,110, down 1% from December.

House prices show mixed signals

Halifax reports house prices dipped -0.1% in February with the average property price at £298,602, though annual growth remains steady at 2.9%.

Nationwide reports UK home prices rose 3.9% year-on-year and 0.4% month-on-month, with the average house price at £270,493.

Zoopla highlights that house values increased 24% over 5 years – three times faster than flats (7%), creating a 30-year high in the price gap between houses and flats.

Asking prices remain cautious

Rightmove reports property asking prices rose 0.5% (+£1,805) to £367,994 – a muted increase for this time of year. Sellers are showing pricing restraint due to high competition and the looming Stamp Duty changes.

Housing stock reaches new heights

Zoopla reports the most homes for sale in 7 years, with 11% more homes coming to market, including 14% more flats versus 5% more houses.

Rightmove confirms available homes at a 10-year high, moderating the typical new year price surge.

Mortgage market shows resilience

January was a record month for mortgage in principle applications on Rightmove, 49% higher than January 2024.

Bank of England figures show mortgage approvals at 66,189 in January (-0.5% monthly but 18.3% higher year-on-year).

Current average mortgage rates are 5.41% for two-year and 5.23% for five-year deals (Moneyfacts).

Zoopla notes mortgage repayments for flats are 43% lower than rental costs.

Buyers continue to prefer houses despite price gap

Despite growing price differences, buyers still prioritise houses over flats. Zoopla reports that over half of first-time buyers outside London wanted 3-bed houses by end of 2024, up from two in five in 2017.

Buyer demand is 8% ahead of last year (Rightmove), with new sellers 13% ahead year-on-year.

Stamp duty changes driving market behavior

The April 2025 Stamp Duty changes are influencing the market. Nationwide predicts a March transaction surge followed by weakness in subsequent months.

Rightmove warns of a conveyancing log-jam with 550,000 homes awaiting completion (25% more than last year).

According to Zoopla, half of homeowners will pay an extra £2,500 per purchase, while 40% of first-time buyers will pay more Stamp Duty (up from 20%).

First-time buyer purchases between £500,001-£625,000 face an extra £11,250 risk if the deadline is missed (Rightmove).

Summary: A market in transition

The UK property market is in transition with the Stamp Duty deadline creating both opportunities and challenges. While activity remains robust and prices are generally stable, the substantial increase in available properties is creating more balanced conditions.

Expect a March transaction surge followed by a potential slowdown. However, strong earnings growth and continued buyer demand suggest any post-deadline weakness may be short-lived.

The house-flat price gap may eventually shift buyer preferences, while increased seller competition means realistic pricing remains crucial in this evolving landscape.