The UK housing market saw a modest increase in March 2025, with average asking prices rising by 1.1% (£3,876) to £371,870. This comes as sellers flood the market with listings, providing buyers with a wider selection and fostering greater competition. The number of new sellers entering the market is the highest since 2015, leading many to adjust their pricing strategies to attract buyers.
A key factor driving this surge in listings is the looming March 31 stamp duty deadline, creating a backlog of transactions. Currently, 575,000 property moves are in progress, with around 74,000— including 25,000 first-time buyers— at risk of missing the deadline. If they do, buyers could collectively face an additional £142 million in taxes.
At the same time, mortgage rates have dipped slightly, with the average five-year fixed rate now at 4.74%. The Bank of England is expected to hold interest rates steady this month, with potential cuts coming as early as May. Regulators are also considering easing lending requirements, which could make home financing more accessible for buyers.
Despite these positive trends, the market has shown some signs of slowing. Buyer demand in February was at its weakest since late 2023, as inflation concerns and global economic uncertainties weighed on consumer confidence. However, experts remain optimistic, predicting 1.15 million property transactions this year. In 2024, the market recorded 1.1 million transactions, with home prices averaging £343,822— a 6.3% increase from the previous year.
Looking ahead, anticipated interest rate cuts are expected to boost buyer confidence and spending power, potentially fueling further growth in the UK housing market over the next year.
