Investing.com -- Mortgage lender Nationwide on Wednesday released data indicating a slight decrease in U.K. house prices for April 2025, with the average price falling by £564 to £270,752.
This dip comes as the market takes a momentary pause following a bustling March, which saw a rush to finalize transactions before changes to stamp duty took effect.
Despite the monthly drop, house prices have experienced a year-on-year increase of 3.4%, equating to an additional £8,900 on average.
The minor contraction in April places house prices just 1% below the record high set in the summer of 2022. Nationwide’s figures reflect a seasonally-adjusted monthly decline of 0.6%.
Analysts at RBC suggest that the underlying factors, such as rising wages and declining mortgage rates, continue to support the UK housing market. They anticipate that once the effects of the stamp duty holiday are fully absorbed, house prices are likely to resume their upward trajectory.
The stability of national house prices is expected to influence U.K. housebuilders in two primary ways. Firstly, as price takers, they benefit from increases in the existing homes market, which in turn can drive up prices in the new build sector. Secondly, transaction volumes are expected to be buoyed by the prospect of rising prices, with the fear of missing out prompting more purchases in a stable or appreciating market.
As the late spring of calendar year 2025 approaches, housebuilders appear well-positioned, supported by a solid start to the year and lingering advantages from the now-expired March stamp duty holiday.
RBC analysts maintain a positive outlook, believing that despite a potential decline in interest during April and May due to the stamp duty holiday, supportive factors such as falling mortgage rates and increasing wages will sustain healthy sales rates.