The UK housing market saw a slight dip in average property prices in April 2025, with figures from Nationwide showing a monthly decrease of 0.6%. However, on an annual basis, prices remain 3.4% higher than this time last year—encouraging news for landlords seeking long-term capital growth and stability following a stamp duty-driven buying frenzy in March.
April dip expected after Stamp Duty changes
According to Nationwide’s latest house price index, the average UK home now costs £270,752. That’s down slightly from March, when the annual growth rate hit 3.9%, but analysts agree the drop was both predictable and short-lived.
Robert Gardner, Chief Economist at Nationwide, explained: “April saw a slowing in UK house price growth to 3.4%, from 3.9% in March. House prices fell by 0.6% month on month, after taking account of seasonal effects.” He added that the slight fall followed “a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations.”
These tax obligations stemmed from the 1 April reduction in stamp duty thresholds, which caused a rush of completions in March, distorting April’s numbers. Gardner believes the market will regain momentum as we move further into spring and early summer: “Underlying conditions for potential home buyers in the UK remain supportive,” he said, citing low unemployment, rising real earnings, and signs of easing borrowing costs.
Nathan Emerson, CEO of Propertymark, struck an optimistic tone: “It is encouraging to see house prices remain resilient month on month. This provides many aspiring home movers with a perfect opportunity to investigate the marketplace more robustly.” He also called on the government to address housing supply challenges: “The UK Government and devolved administrations need to make fulfilling their housing targets a priority to help even out long-standing demand versus supply issues.”
That sentiment is echoed across the industry. Foxtons’ Chief Sales Officer Jean Jameson noted: “The first quarter was one of heightened activity… With the anticipation of further rate cuts and mortgage provider competition, we expect to see the market accelerate through the gears over the remainder of the year.”
Confidence building as buyers and renters return
For buy-to-let investors and portfolio landlords, confidence in the property market is quietly building. Recent reductions in mortgage rates have made remortgaging and acquisitions more attractive, especially for those who acted before April’s stamp duty reset.
Marc von Grundherr, Director of Benham and Reeves, commented: “This is nothing more than a momentary pause for breath following a heightened sense of urgency… We expect to see an increase in market activity over the coming months.”
Similarly, Verona Frankish, CEO of Yopa, believes the short-term price dip is not indicative of a broader trend: “Buyers continue to re-enter the market, spurred by reductions to interest rates and a more settled mortgage landscape.”
Meanwhile, Jonathan Samuels, CEO of Octane Capital, highlighted the importance of mortgage availability in maintaining demand: “We’ve seen monthly mortgage approval numbers sit above the 60,000 threshold since January of last year, which demonstrates buyer confidence in the market and bodes very well for the year ahead.”
Landlords benefit from a stable market and rising demand
While the April slowdown might make headlines, seasoned landlords are looking beyond the monthly blips. For them, the broader narrative is one of resilience. Interest rate expectations, mortgage affordability, and consistently high tenant demand are providing a solid base for both rental yields and capital growth.
Nationwide’s full report can be read here: Annual house price growth slows slightly in April
