The UK housing market has reached a new milestone as the average asking price for properties listed for sale soared to an all-time high of £377,182 in April 2025. This represents a 1.4% month-on-month increase—or £5,312 more—according to property portal Rightmove. It’s the most significant April increase in over a decade, occurring even as the market sees the highest volume of homes for sale in 10 years.
At first glance, this upward movement in pricing might seem counterintuitive. After all, the property sector has recently faced several headwinds: the removal of temporary stamp duty relief, the lingering effects of high interest rates, and ongoing economic uncertainty—both domestic and global. Yet, the data tells a compelling story of resilience and surprising buyer confidence.
Resilience Amidst Uncertainty
Rightmove’s data suggests that, despite the increase in costs, buyers are still entering the market in strong numbers. The rate at which sales agreements are collapsing has stabilised, and many purchasers who narrowly missed the stamp duty deadline are still pushing forward with their transactions. In fact, the backlog of delayed completions—those racing to beat the stamp duty threshold—has dropped by nearly 24,000.
This signals that demand remains robust, even in a shifting financial landscape. Colleen Babcock, a property expert at Rightmove, noted:
“We’ve seen our first price record in nearly a year, despite the number of homes for sale being at a decade high. The increased choice seems to be bringing more movers into the market, with both buyer and seller numbers up as the market remains resilient.”
Importantly, she added a word of caution for sellers:
“The high level of supply in the market right now means that buyers are likely to have plenty of homes in their area to choose from, and an overpriced home will stick out for the wrong reasons.”
In other words, while demand is strong, it’s not limitless. Buyers are becoming increasingly savvy, and properties that don’t align with current valuations risk being left behind.
Regional Performance: North vs South
One of the standout features of the current market is the regional variation in price trends. According to Rightmove’s latest figures, the North, Midlands, Wales, and Scotland are outperforming the national average in terms of price growth. These regions have all seen new local pricing peaks, driven in part by greater affordability and higher demand from both homeowners and investors.
In contrast, the South East and South West are lagging. Despite the broader national trend, these regions—typically among the most expensive in the UK—have seen more muted growth, potentially reflecting affordability ceilings.
London, traditionally a bellwether for the UK property market, has hit a new price milestone as well. However, analysts warn that the capital remains vulnerable to global economic shifts, including foreign investment patterns, Brexit-related adjustments, and currency volatility. Concerns are also being raised over how the return of President Trump’s tariffs on UK goods could impact the economy and, by extension, the high-end property market.
What’s Driving Buyer Confidence?
In spite of higher base interest rates in recent years, buyer interest is actually up 5% year-on-year, with a corresponding 4% increase in new vendors entering the market. There are several key factors at play here:
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Anticipated Interest Rate Cuts:
Market watchers believe that the Bank of England could cut the base rate as early as May, providing relief for mortgage holders and stimulating demand further. Lower interest rates would improve affordability and borrowing power, making property purchases more accessible. -
Seasonal Momentum:
Traditionally, the spring and summer months see heightened housing activity, and 2025 is no exception. As Nathan Emerson, CEO of Propertymark, noted:“We now progress into the spring and summer months, which typically deliver strong momentum for the sector.”
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Stable Inflation:
While inflation hasn’t entirely settled, recent months have seen more stable economic indicators. This has helped restore some of the buyer and lender confidence that wavered during the turbulence of 2023–24.
Market Reactions from Industry Experts
The outlook among industry professionals remains cautiously optimistic.
Tomer Aboody, director at MT Finance, highlighted the impact of interest rates:
“So far this year it has been a positive few months for the housing market with transaction levels improving, although still below pre-pandemic levels… all eyes are on the Bank of England to see whether there will be a further reduction in May.”
Jeremy Leaf, a North London estate agent and former RICS residential chairman, emphasised sellers’ current strategy:
“Attack is the best form of defence for some sellers… many want to tough out the loss of the stamp duty concession, keep asking prices up and let the market find a new ‘normal’.”
However, he also recognised that other vendors are adjusting:
“Some are recognising that the inevitable drop in demand must be reflected in a modest fall in prices in order to generate viewings and offers.”
This dual approach—some sellers standing firm, others pricing more competitively—underscores the fragmented nature of today’s market.
Key Takeaways for Buyers and Sellers
For buyers, the message is clear: now is still a good time to buy—especially before interest rates drop further, which could ignite more competition and drive prices up even more. If you’ve been waiting on the sidelines, acting soon might mean locking in a good deal before the summer surge intensifies.
For sellers, while the market is strong, it’s crucial to price realistically. Overconfidence can lead to prolonged listing times, especially when buyers have more choice than they’ve had in years. A well-priced home, marketed properly, is still likely to attract serious attention and sell quickly.
The Road Ahead
Looking forward, the UK housing market is likely to remain active throughout the spring and summer seasons. The combination of historically high asking prices, ample supply, and growing buyer confidence sets the stage for a dynamic period.
However, challenges remain. The global economic landscape, particularly trade relations and inflation, will continue to influence decisions by the Bank of England. Domestic politics and upcoming policy changes, particularly around housing supply and taxation, could also play a role in shaping sentiment.
For now, though, the market remains surprisingly robust—a sign of underlying confidence in the UK’s property sector as both a place to live and a long-term investment.