As we move into the heart of spring, the UK property market is showing strong signs of resilience and momentum despite broader economic uncertainties.
Demand Holding Firm
While recent changes to stamp duty were expected to have an immediate cooling effect on buyer activity, we’ve yet to see signs of a slowdown. In fact, buyer interest remains robust with registrations up 21% in March compared with the same time last year. This suggests confidence in the market is still high following the stamp duty changes
Balanced Market Conditions
The surge in demand is being met with a healthy supply of homes. Our available stock has increased by 24% year-on-year, keeping the demand/supply ratio well balanced. This equilibrium is good news for both buyers and sellers, who currently have the luxury of ‘choice’ when looking for their next home.
Economic Crosswinds: Inflation vs. Interest Rates
On the global stage, ‘Trump’s tariffs’ have shaken stock markets and raised concerns about inflation. However, there is growing consensus that these pressures could accelerate interest rate cuts in the UK. While most economists originally forecasted two rate reductions this year, there’s now talk of up to three, with interest rates potentially dropping to 3.75%. Lenders are already reacting, and we’re seeing sub-4% mortgage products begin to surface, offering new opportunities for buyers to lock in low borrowing costs.
House Price Growth Continues
UK house prices remain on an upward trajectory. According to the latest figures from the ONS, average house prices rose by 5.4% in the 12 months to February 2025. This marks a slight acceleration from 4.8% annual growth in January. Regional growth varies, with the Southwest showing a more modest 3.9% annual increase, yet significantly higher than London, which stands at 1.7% growth.
Looking Ahead
All eyes are on how the government balances inflation concerns with the need to support economic growth. But for now, the property market remains buoyant, supported by solid buyer demand, more choice, and a lending environment that may soon become even more favourable. For sellers, this means opportunity — but only if homes are priced realistically to reflect current market dynamics. With buyers having more options, accurate pricing is key to standing out and achieving a successful sale. We believe the wider economy would do well to look at the property market for more positive news as it paints a different picture.
Whether you’re looking to buy, sell, or simply reassess your position in the market, this spring could present a window of opportunity worth exploring. We’re always here to provide support. In the meantime, start your moving journey here: Find Out How Much Your Home is Worth
