This week, Trump played the hokey pokey with tariffs, causing economies across the globe to fall down. For the UK, this has traders increasing their bets on a rate cut in May, bringing some light relief to homeowners and buyers before inflation potentially rises again. Welcome to another UK Property News Recap – 11.04.2025.
International buyers look to more tax efficient shores
The estate agency Hamptons found International enquiries fell 1% between January to March – the lowest level since 2008. French and Italian buyers were the most deterred by the increase in taxes and economic uncertainty but some North Americans remained engaged. For those sellers in Prime Central London, buyer numbers declined a further 2.9%, leaving many forced to rethink their asking price.
\
Eric Schmidt splashes out in the Capital
It has been revealed that the former boss of Google, Eric Schmidt, bought a Grade II-listed, Holland Park mansion last May for nearly £42m, which he intends to…rent out.
House price retract for a second month according to Halifax HPI for March
The priority in March, for progressed buyers, was to make the stamp duty holiday gate before it closed. For those just at the start of their journey, house prices fell for a second consecutive month, down -0.5% in March making the average property worth £296,699. A small benefit but not enough to be felt. Despite this the rate of annual growth remained unchanged from February at +2.8%, with Northern Ireland, once again, experiencing the fastest pace of growth at +6.6%
Tariffs cause swap rates to nose dive
Trump tariff chaos caused swap rates to nosedive this week. This empowered MPowered mortgages to lead the discount charge, slashing rates by up to 0.21 percentage points on Tuesday – providing some light relief for borrowers.
UK house prices edge up but for how long?
For the third month in a row the average sale price of homes in England and Wales edged up. Prices tiptoed up 0.1% in March to reach just over £359,000. Despite this, average annual prices remain slightly lower than a year ago and nearly 5% below the peak of late 2022.
Five years on – Rightmove trend analysis
The need for more space hasn’t dissipated post Covid but the desire to relocate 5-10 years ahead of schedule to coastal regions has, as the office increasingly places collect calls. This has meant 58% of buyers in the Capital now intend to stay put versus 47% in 2021. At the same time, the coastal home growth spurt has slowed to 1% according to Rightmove, with homes now taking an additional three weeks to sell.
For first time buyers, wage growth has outstripped house price growth but increased rates while higher rents have made it harder to save, tempering any potential gain.
RICS residential market survey for March 2025 paints a UK property market in flux
The holiday now over, buyers and sellers took a step off the gas in March to see how prices adjust. Overall these appear to be flattening with the usual outliers, Ireland and Scotland, continuing to display noticeable growth. Moving forward, there appears to still be an appetite to move to greener pastures; sellers increasingly requesting valuations either to be listed post Easter, to tie in with an expected rate cut in May or for later in the year, when surveyors still believe prices will recover after this initial lull.
For rents, non-seasonally figures showed demand increasing and with this continued price growth as stock levels continue to retract across the country with the exception of East Anglia. This will hit renters saving for a deposit further, just as moving got more expensive.
First time buyers lead the charge in Q1 2025
According to Hamptons, first time buyers dominated residential sales in Q1 of 2025 as they raced to beat the stamp duty deadline. Purchasing a record 33% of all homes sold across Great Britain, up from 30% in Q1 2024. Of these buyers, the biggest uplift came from those purchasing homes above £300k, where the stamp duty hike would be felt the most. Despite price corrections in 2023 to early 2024, prices picked up at the end of the year though into 2025 where they now seem to have settled post holiday.
UK construction picks up in February 2025
Construction built on its output numbers in February, increasing 0.4%, following a fall of 0.2% in January. Public and other New Work was mainly responsible for the growth spurt while private housing repair and maintenance was the biggest loser, falling 3.2%.
Traders bet on May rate cut
As a direct result of Trump’s tariff threat, the chance of a quarter-point rate cut at the BoE’s next scheduled meeting on monetary policy in May had risen to 84%. This could help those looking to remortgage and proactive buyers looking to capitalize on the current post stamp duty slump.
The UK country market spring bloom goes unnoticed
According to Knight Frank, supply in the country was stronger than demand in Q1: the number of properties coming to the market increased by 3% versus last year, while enquiries fell by 7%.
Prices during this time, fell by 0.3% over the quarter, taking the annual price fall in the country to -1.6%, which was the widest decline since Q2 2024.
Above £5 million, the annual decrease was -3%, while the number of new applicants for properties in Q1 was 15% lower than last year. Underlining the importance of realistic prices.
London Metric looks for more warehouse space
Urban Logistics got a “preliminary, indicative proposal … regarding a possible offer for the company” by LondonMetric on Friday. In response Urban Logistics shares rose 5.6p, or 4.54 per cent, to 129p on Friday, valuing the business at £600 million. LondonMetric shares increased 2.6p, or 1.45 per cent, to 181.6p.
And that concludes another UK Property News Recap – 11.04.2025. If you have any comments or suggestions, please get in touch.
