After a year of steady recovery, UK house price growth is beginning to slow, but the market remains active beneath the headline figures. As supply rises and buyers regain more choice, regional trends and affordability dynamics are playing a greater role in shaping outcomes for sellers, investors, and first-time buyers alike.
- UK house price inflation slowed to 1.8% in February, down from 1.9% in January.
- Property supply rose 11% year-on-year, widening options for buyers.
- Buyer demand remains 10% higher than last year, with sales agreed up 5%.
- Mortgage rates have stabilised at around 4.4%, softening household affordability.
- Regional divide deepens: prices rising fastest in the North and Scotland, while flat or falling in southern regions.
- London demand fell 3% year-on-year, impacted by first-time buyer stamp duty changes.
Original article source: Zoopla
While house price growth is slowing, there’s no sign of a market losing momentum – quite the opposite. Rising sales volumes, strong buyer demand, and a growing pool of available stock all point to a market adjusting, not retreating.
The key shift here is balance. More homes on the market mean buyers are regaining some negotiating power, particularly in regions where supply is rising faster than demand. For sellers, that makes pricing strategy critical – particularly heading into spring when nearly a third of annual listings typically arrive.
In southern England, the uptick in supply – fuelled in part by stamp duty changes for second homes – is meeting softer buyer interest. That’s holding price growth at modest levels or, in some hotspots, pushing it slightly negative. But this should be seen less as a downturn and more as a market correction. Price sensitivity in these areas could pave the way for more realistic offers and faster transactions, especially if sellers adapt.
Meanwhile, the Midlands, northern England and Scotland are telling a different story. In these regions, demand is outpacing new supply – and house price growth is leading the national average. Lower entry prices and better relative affordability are clearly attracting more first-time buyers and upsizers alike. For investors, these locations offer a clearer path to capital growth over the medium term.
London, by contrast, is facing a short-term pause. The rush to beat the 1 April stamp duty change has created a temporary lull, particularly among first-time buyers – but demand is likely to resume once the market absorbs the new pricing thresholds. For long-term landlords, this quieter period may offer a window of opportunity to negotiate well in a market with high stock and more motivated sellers.
Mortgage rates, while not falling further for now, remain stable – and with earnings growing faster than inflation, buyer affordability is holding steady. As we move further into 2025, we’re likely to see a housing market that is more measured, but still active, and full of regional opportunity for those with a clear strategy.
For buyers and sellers alike, pricing realism and local insight will be key – not just to navigate this market, but to move confidently within it.
