Land Registry: House price growth halves amid Stamp Duty changes
House price growth has halved in the aftermath of the Stamp Duty rush, Land Registry data shows.
The latest Land Registry House Price Index revealed average UK house price annual inflation was 3.5% in April.
The figure is down from the revised estimate of 7.0% in the 12 months to March 2025 and times with the changes in Stamp Duty thresholds.
On a non-seasonally adjusted basis, average UK house prices decreased by 2.7% between March 2025 and April 2025, compared with an increase of 0.5% in the same period 12 months ago. On a seasonally adjusted basis, average house prices in the UK decreased by 2.8% between March 2025 and April 2025. It is the biggest monthly drop for almost four years.
Based on this, the average UK house price was £265,497 in April 2025.
There is also a time lag in Land Registry data but it is now catching up with other indices that are suggesting slowing price growth.
Commenting on the index, Iain McKenzie, chief executive of The Guild of Property Professionals, said:
“The ONS data showing a moderation in annual house price growth to 3.5% comes as no surprise and reflects a predictable market rebalancing, rather than a fundamental slowdown. The market experienced an exceptional, tax-driven transaction frenzy in March, which inevitably pulled activity forward and created a statistical drop in April.
“The headline figure, however, masks the true story of a market showing underlying strength and resilience. The fundamentals for a healthy housing market are not only in place but are improving.
“Demand remains and is growing, with Zoopla reporting the number of sales agreed in May reached a four-year high. While this demand is being met by a 13% increase in the supply of homes for sale, this is a positive development. It creates a more balanced and sustainable market, giving buyers greater choice and keeping prices in check. It’s a sign of health, not weakness.
“While the Bank of England is expected to hold rates this week, the overall interest rate cycle is on a downward trend. More importantly for buyers, lenders have already begun to relax affordability criteria and revise stress-testing, in some cases boosting borrowing power by up to 13%. This tailwind that will play a crucial role in driving transactions for the remainder of the year.
“The Stamp Duty rush created a temporary statistical blip. The market has now digested those changes and is returning to a strong, sustainable rhythm. With steady demand, improving affordability, and more choice for buyers, the UK housing market is on a very firm footing for the rest of 2025.”
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