UK house prices remained flat in March, with the average home costing £271,316, according to Nationwide building society. The monthly change was 0%, down from February's 0.4% rise, while the annual growth rate held steady at 3.9%.
Regional variations were stark, with Northern Ireland seeing the strongest annual price growth at 13.5%, the highest since 2021. Scotland recorded 3.9%, Wales 3.6%, and London the weakest at 1.9%, though it remained the most expensive region with an average price of £529,369. Northern Ireland was the cheapest at £205,796.
The end of the stamp duty holiday on 31 March contributed to the slowdown, as buyers rushed to complete purchases beforehand. Robert Gardner, Nationwide's chief economist, noted that activity is likely to remain soft in the coming months due to the pull-forward effect. Mortgage approvals hit a six-month low in February, according to Bank of England data.
Despite global economic uncertainty, Gardner expects a gradual recovery in summer, citing low unemployment, rising real earnings, strong household balance sheets, and potential further interest rate cuts. Financial markets anticipate a 68% chance of a rate reduction in May.
Tom Bill of Knight Frank predicted a dip in activity from April as demand resets, but strong supply should keep downward pressure on prices. He warned that borrowing costs could remain higher due to erratic US trade policy and domestic fiscal changes.
