Residential property price growth is slowing after a sustained recovery over the last 12 months, new data from Zoopla shows.
According to the property website’s latest house price index, the annual rate of UK house price growth dipped to 1.8% last month, down from 1.9% in January and is set to slow further in the coming months. The average price of a UK home is currently £267,500, £4,750 higher than a year ago.
UK average house price dips as demand slows – London Wallet
Industry reactions:
Tom Bill, head of UK residential research at Knight Frank comments: “Supply has been rising faster than demand this year, which has put downwards pressure on house prices. We expect demand to strengthen after April in line with normal seasonal patterns and as new rates of stamp duty create a level playing field for all buyers. That said, doubt remains over how quickly mortgage rates will fall, particularly if the spring statement isn’t well-received by financial markets and inflation stays stubbornly high due to the more adverse employer landscape from April. We also face months of uncertainty over how US trade tariffs may make life more difficult for UK borrowers.”
Matt Thompson, head of sales at Chestertons, said: “Despite the recent rush of first-time buyers entering the market to beat the stamp duty deadline having slowed down, sellers anticipate a busy spring market. We have seen an increasing number of homeowners listing their property for sale in March which is currently creating a greater choice for house hunters. Still, with London having one of the most competitive property markets in the world, buyers are required to act fast and start their search as early as possible.”
Toby Leek, President or NAEA Propertymark, commented: “It’s inevitable that the changes in stamp duty thresholds were going to push many buyers to enter the market, in some cases, quicker than they potentially would have liked.
“By doing this and by acting quickly on their next home, lots of people may have saved thousands in the process. However, we’re now likely to witness the return to normality on the tail end of this spike as the sense of urgency has gone for a lot of buyers.
“Moving forward, we are now possibly going to see a further tapered slowing in house price growth, especially in areas like London, as a new middle ground to entice buyers starts to emerge.”
Adam Feather, managing director of Robert Anthony Estate Agents, added: “Although the rush in applications driven by the stamp duty changes has slowed in recent weeks, today’s data from Zoopla is a positive sign that the housing market remains resilient to broader economic instability. However, affordability remains a real issue, with many prospective purchasers continuing to struggle with deposit requirements. Until lending rules are relaxed, homeownership will remain inaccessible for many would-be first-time buyers.
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