Latest House Price Index sparks positivity for summer
The latest HPI data from e.surv, powered by Acadata, shows a modest 0.1% annual increase in the average sale price of a home in England and Wales, reaching £359,000 in March. This marks the third consecutive month of positive growth, reflecting a gradual recovery in the housing market.
This news comes alongside a -1.4% annual decrease, however, this first quarter of 2025 has shown encouraging month-on-month signs. There has also been a short-term boost from households in England trying to move home before 1st April when stamp duty concessions ended and higher rates returned for first-time buyers and others.
Rob Owens, head of research at e.surv commented: “The first quarter of 2025 has shown encouraging signs, driven by improving household finances and easing mortgage rates. Additionally, the rush to move homes before the end of stamp duty concessions has provided a short-term boost.
“Despite these gains, average annual prices remain slightly lower than a year ago and nearly 5% below the peak of late 2022. However, the data suggests a steady decline in negativity, with the market becoming more positive in the coming months.”
Regionally, London, the South, the East Midlands, and the East of England continue to struggle, with average house prices in London now down 7.8% annually. In contrast, the North East, North West, and Yorkshire and The Humber have seen increases of 1.9%, 2.4%, and 1.4%, respectively.
Looking ahead to the summer months, it’s key to note that the backdrop to all of this is both international and national uncertainty and how governments and central banks respond to this. With the continued search for economic growth, the housing market potentially becomes an even more important locus for rebuilding economic momentum.