This week sellers got overconfident, listing at higher prices, hoping buyers would spring into action. However the Bank of England was at odds with this, anticipating lending to plateau after a buoyant Q1. That said, rates shed a few pounds off the back of slower than expected inflation data which will provide some relief to borrowers but not enough to warrant any over-egged house price. Welcome to another UK Property News Recap 18.04.2025.
Rightmove HPI April 2025 – shows seller optimism
Sellers get carried away and spring into action en masse, raising asking prices by a record 1.4% in April according to Rightmove HPI for April 2025. The portals now in bloom, buyers have a larger selection of stock to pick from, which will dampen the spirits, and profits, of any overly optimistic seller. Those being the most bullish remain in the Midlands and Northern regions where prices and activity remain buoyant while sellers in the South East and West take a more tentative approach, as affordability remains an issue in these historically higher priced areas. The outlier, London, bloated from decades of excess, continued in April to pursue higher prices despite an exodus of money and first time buyer initiative.
Country prices take a tumble
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 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.
Only 3% of non-disclosure fines of UK Property has been collected
The Financial Times found 444 fines were issued to companies for non-compliance with the Register of Overseas Entities since January 2023, yet just 14 were collected. Of the £22.99mn levied in fines only £700,000 has been collected since the introduction of the register, making a mockery of any real threat of enforcement.
More choice doesn’t address affordability issues
Mortgage choice increased for those with 5% to 10% deposits but elevated rates left affordability woes unchanged despite recent reductions to lender rates. Kick-started by Barclays bank, fellow lenders HSBC, Co-op, Halifax and Lloyds swiftly followed suit.
Today there are 442 mortgages for those with a 5% deposit to choose from, up from 204 two years ago. Those with a 10% deposit now have 845 products to choose from, up from 684 in April 2023.
TwentyCi Property & Homemover Report Q1 2025
TwentyCi Property Report showed increases in stock levels delayed sales times but overall sales activity improved in Q1 2025 when compared with the same quarter in 2024 with asking prices increasing the further north you go.
Interestingly, down-sizers were on the move, accounting for 42% of all homemovers in 2025. This may be due to postponed moves when the market was on its knees or potentially to assist their offspring onto the ladder.
However, for those living in the South East, where affordability remains strained, they will struggle to make a sale.
Slower than expected inflation falls trigger bank rate cut expectations
CPIH, CPI, and OOH slowed by 3.4%, 2.6% and 1.19% respectively in the 12 months to March 2025. Off the back of this slower than expected fall in inflation, traders added to their bets for rate cuts from the Bank of England.
This will provide a small window of relief before April showers hit and give borrowers a much-needed interest rate break.
ONS provisionally estimates house price rises in February 2025
The ONS estimated average UK house prices rose 5.4%, to £268,000, in the 12 months to February 2025. £292,000 (5.3%) in England, £207,000 (4.1%) in Wales, and £186,000 (5.7%) in Scotland. However, on a non-seasonally adjusted basis, average UK house prices remained unchanged between January 2025 and February 2025.
Terraced houses closely followed by semi-detached homes saw the greatest increase in price over the year. Prices rose 6.2% and 6.1% respectively while flats lagged behind with a 3% rise.
(All data subject to change in a year’s time)
Rental growth continues to slow
Rental growth continued to slow but price advancement consumes savings and deposit hopes. Average UK monthly private rents increased by 7.7%, to £1,332, in the 12 months to March 2025. £1,386 in England up 7.8%, £792 in Wales, up 8.9%, and £1,001 in Scotland up 5.7% in the 12 months to March 2025.
In Northern Ireland, average rents increased to £838 (8.2%) in the 12 months to January 2025.
Barratt Redrow struggle with forward sales but housing targets remain in their sites for year
Barratt Redrow forward sales fell 10.1% to 10,245, while the value of sales were worth £3.14bn in the period, down 2% from £3.2bn in the previous period. This was largely on the back of a 12.1% decline in the value of forward sales of affordable housing, which dropped from £848m to £745m.
Meanwhile, the value of forward sales of private homes actually rose 3.3% from £2.17bn to £2.24bn, despite a 3.5% drop in the total number of private homes sold.
The housebuilder’s private home order book stood at 5,503 homes, 3.5% lower in terms of volume relative to the position a year ago, but ahead by 3.3% in value terms at £2.24bn.
Tax raised from second homes is being used by local authorities as a cash cow to keep the lights on
The Telegraph found that for every £1 raised from the increase in tax on second homes, 9p is going towards providing locals with affordable housing solutions in some boroughs.
UK Property hots up
The University of East London conducted a survey that found the number of UK homes overheating in summer quadrupled to 80% over the past decade.The study also found that the use of air conditioning soared sevenfold to 21% of homes between 2011 and 2022, adding further strain to the electricity grid moving forward.
Vauxhall Square plans to tower above
New owners, Cedarstone Capital Partners & Bmor, have chosen new architects to redesign Vauxhall Square development to boost the scheme’s towers to 70 storeys, 20 storeys higher than what they currently have consent for to get more bang for their buck.
Mortgage demand to soften after a bullish start to the year
In the Bank of England’s latest Credit Conditions Survey for Q1 2025 – lenders reported that demand for secured lending for house purchase increased in Q1, but was expected to plateau in Q2. At the same time, demand for secured lending for remortgaging which increased in Q1 is expected to continue into Q2 2025.
Living conditions for families in military housing gets “shined”
A new Consumer Charter, is introduced by Defence Secretary John Healey who promises to “stop the rot” in military housing. Measures will include higher move-in standards, more reliable repairs, renovation of the worst homes, and a named housing officer for every family – all in place before the one-year anniversary of 36,000 military homes being brought back into public ownership.
Lonres data shows PCL house price discounts roll into Q1 2025
Looking back at Q1 2025 Lonres data, Prime Central London continued to struggle to agree a price close to asking. Buyers in Mayfair bagged the biggest discount, averaging 13.5% while buyers in Putney, Barnes and Wimbledon received the smallest average discount at 5.2%.
Mayfair and Knightsbridge continued to fall out of favour, looking outdated both financially and stylistically.
Meanwhile 67% of properties languished on the portals for three months and 54% of properties had their initial prices slashed in Q1 2025 in PCL.
And that concludes another UK Property News Recap – 18.04.2025. If you have any comments or suggestions, please get in touch.
