UK house prices rise as spring selling season picks up
UK house prices have edged up by 1.1% in March, with the average property now listed at £371,870, according to new figures released this week. The rise comes as the spring selling season reaches full swing and coincides with a surge in new listings, the highest volume of homes for sale in over a decade.
This uptick follows the traditional pattern for this time of year, when sellers typically enter the market with increased confidence. The early months of spring are often viewed as prime time to sell, and this year seems no exception. Sellers appear to be taking a realistic approach, with asking prices rising in line with seasonal averages, rather than pushing for overly ambitious figures.
However, with more sellers comes more competition. Buyers entering the market in March 2025 will find a notably broader choice of properties, especially in the upper tiers of the market. Four- and five-bedroom homes have seen the biggest monthly increase, with asking prices up by 2.1%. In contrast, smaller properties, often targeted by first-time buyers, have risen by a more modest 0.5%.
This month also marks the final days before the government’s 31st March stamp duty deadline, which has added extra urgency for many buyers trying to complete deals in time. An estimated 575,000 homes are currently stuck in the conveyancing process, with about 74,000 of those transactions, 25,000 involving first-time buyers, expected to miss the deadline and complete in April instead. According to current estimates, the delay could result in a combined £142 million in additional tax if no extension is announced.
The Chancellor’s Spring Statement, due shortly before the deadline, may provide a last-minute chance for intervention, though hopes for an extension remain uncertain. Buyers and sellers who entered the process in good faith may be left footing larger bills through no fault of their own, due to delays largely out of their control. You can view full details of the current tax regime on the HMRC stamp duty site.
Despite the tax changes, there are still signs of resilience in the housing market. The number of sales agreed is currently 9% higher than this time last year, while the volume of new sellers is up 8%. Activity levels have remained steady, pointing to a broadly optimistic mood, even as mortgage affordability continues to be a factor.
Mortgage rates are playing a key role in shaping this year’s housing market. The average five-year fixed rate now stands at 4.74%, a drop from the 6.11% peak in July 2023, though only slightly down from 4.84% at the same point last year. You can compare current average mortgage rates here.
Colleen Babcock, a property expert speaking to EyeOnLondon, said: “This is typically one of the strongest periods of the year for sellers to make a move, but the high number of homes on the market means buyers have more choice. That means pricing and presentation matter more than ever.”
Mortgage expert Matt Smith added: “We’ve seen lenders trying to stay competitive, particularly in this peak selling window. But global economic uncertainty is causing some week-by-week rate fluctuations, which buyers and sellers need to factor into their planning.”
For anyone starting their property search now, the good news is that available stock is at its highest point since 2015. However, this also means sellers must stay flexible if they want to stand out.
For more updates on UK house prices and expert insights on buying and selling in London, visit EyeOnLondon. We’d love to hear your views in the comments.
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