Source: Sharecast
According to data from the Office for National Statistics, average UK house prices rose by 3.5% in the 12 months to April, to £265,000. However, that was down notably on March’s 7.0% uplift.
The ONS said it was likely that the changes to stamp duty had led to a temporary spike in house prices in March, as buyers rushed to complete before the deadline.
"A similar patters was observed in autumn 2021, when volumes and average prices increased before the October 2021 stamp duty changes," it noted.
In England, the average price of a house is now £286,000, up 3%. In Wales it is £210,000 and in Scotland £191,000 following rises of 5.3% and 5.8% respectively.
UK monthly rents, meanwhile, spiked 7% in the 12 months to May, the ONS said, only marginally lower than April’s 7.4% growth rate. The average rent in England is now £1,394.
Chris Barry, director at property solicitors Thomas Legal, said: "The first few months of 2025 were exceptionally busy, and that sent [house] prices up - but then the inevitable lull kicked in.
"The UK will undoubtedly see a few months where the market regathers itself before things potentially start to pick up again in the autumn. This morning’s inflation data does not help, however, as a rate cut on Thursday is almost certainly now off the table. Borrowers needed a break but are unlikely to get one."
The Bank of England’s Monetary Policy Committee will announce its latest interest rate decision on Thursday.
It has trimmed the cost of borrowing twice this year, to 4.25%, but while more cuts are expected this year, few analysts believe it will move again this month.
Data showing the rate of inflation was 3.4% in May, broadly unchanged on April, was published earlier on Wednesday.
The monthly house price index is compiled and published by HM Land Registry and the ONS.
