UK house prices fell slightly in March following a surge in transactions earlier in the year, driven by buyers rushing to beat changes to stamp duty rules introduced on April 1.
According to the latest Halifax House Price Index published Monday, the average property price dropped by £1,575 (€1,843) month-on-month—a 0.5% decline—marking a sharper fall than February’s 0.2% drop and defying analyst forecasts of a slight increase.
Despite the monthly dip, annual house price growth held steady at 2.8%, the same rate as February. This consistency marks the smallest month-on-month movement in the annual rate since July 2024, suggesting a leveling-off in price momentum.
Northern Ireland led regional growth, with house prices rising 6.6% year-on-year. The average property there reached £206,620 (€241,946.9) in March. In contrast, London showed the weakest annual increase at just 1.1%, despite its homes remaining the UK’s most expensive with an average price of £543,370 (€284,972.9).
“House prices rose in January as buyers rushed to beat the March stamp duty deadline. However, with those deals now completing, demand is returning to normal and new applications slowing. Our customers completed more house sales in March than in January and February combined, including the busiest single day on record,” said Amanda Bryden, head of mortgages at Halifax.
“Following this burst of activity, house prices, which remain near record highs, unsurprisingly fell back last month,” she added.
Elsewhere in the UK, Scotland saw annual property price growth accelerate to 4.3% in March, with the average price hitting £213,750 (€250,316.2). Wales followed closely with a 3.7% increase, pushing average prices there to £227,332 (€266,221.7).
Yorkshire and the Humber also saw robust growth, recording a 4.2% annual increase and average home values at £215,807 (€252,759.6).
