? UK Housing Market Update – April 2025
Price Trends:
The UK housing market continues to show resilience. According to the Office for National Statistics, average UK house prices rose by 5.4% year-on-year to £268,000 in February 2025, with England at £292,000 (+5.3%), Wales at £207,000 (+4.1%), and Scotland at £186,000 (+5.7%) . However, monthly data indicates a slight cooling; Halifax reported a 0.5% decline in March, attributed to a post-Stamp Duty deadline slowdown.
Regional Variations:
The North West leads in annual growth at 8.0%, while London lags at 1.7% . Rightmove notes that the average asking price reached a record £377,182 in April, driven by a 5% increase in buyer demand and a 4% rise in new listings compared to last year .Office for National Statistics
Rental Market:
Private rents have surged, with the UK average monthly rent increasing by 7.7% to £1,332 in the 12 months to March 2025. Wales experienced the highest growth at 8.9%, followed by Northern Ireland at 8.2% .
? UK Investment Market Overview
Investor Sentiment:
Investor confidence in the UK is rebounding. BlackRock CEO Larry Fink announced substantial investments in UK assets, citing undervaluation and improved economic prospects under Prime Minister Sir Keir Starmer’s government .
Market Dynamics:
Despite this optimism, UK equity funds saw outflows of £1.2 billion in March, totaling £3.5 billion year-to-date. Global trade tensions, particularly US tariffs, have dampened business sentiment, leading economists to lower the UK’s 2025 growth forecast to 0.9% .
? UK Mortgage Market Snapshot
Interest Rates:
The Bank of England maintained the base rate at 4.5% in April, following a 0.25% cut in February. Markets anticipate three additional 0.25% cuts in 2025, potentially bringing the base rate to 3.75% by year-end .The Guardian
Mortgage Rates & Affordability:
Major lenders, including HSBC, Halifax, and Santander, have eased affordability criteria, allowing borrowers to access larger loans. Sub-4% mortgage rates are now common, enhancing accessibility for first-time buyers .
Refinancing Challenges:
Approximately one million households face significant payment increases as they refinance mortgages secured during the pandemic’s low-interest period. Average monthly payments have risen by £146, potentially impacting consumer spending .
? Outlook
The UK housing market shows signs of stabilization, with regional disparities in growth. Investor confidence is cautiously returning, bolstered by policy reforms and undervalued assets. The mortgage market is becoming more accessible due to rate cuts and relaxed lending criteria. However, global economic uncertainties, particularly trade tensions, pose potential risks to sustained growth.
Mortgage Best Buy Tables
First Time Buyers Fixed Rates
| Lender | Rate | LTV | Rate Type |
| Bank of Ireland | 5.05% | 95% | 2-year fixed |
| Barclays | 4.65% | 90% | 2-year fixed |
| Bank of Ireland | 4.94% | 95% | 5-year fixed |
| Halifax | 4.53% | 90% | 5-year fixed |
Remortgage Fixed Rates
| Lender | Rate | LTV | Rate Type |
| Nationwide | 4.22% | 75% | 2-year fixed |
| Nationwide | 3.99% | 60% | 2-year fixed |
| Nationwide | 4.12% | 75% | 5-year fixed |
| Nationwide | 3.99% | 60% | 5-year fixed |
| Santander | 4.67% | 75% | 10-year fixed |
Buy to Let Purchase Rates
| Lender | Rate | LTV | Rate Type |
| Fleet | 4.84% SPV | 75% | 5-year fixed |
| Virgin Money | 4.32% | 75% | 5-year fixed |
PRODUCTS CORRECT AS OF 25.04.25
ALL MORTGAGE RATES ARE SUBJECT TO CREDIT STATUS, INCOME AND AFFORDABILITY.
ARRANGEMENT FEES AND EARLY REPAYMENT CHARGES MAY APPLY TO THESE PRODUCTS THESR ARE FOR ILLUSTRATIVE PURPOSES OF RATES. PLEASE CONTACT AN ADVISER FOR A RECOMMENDATION TO MEET YOUR CIRCUMSTANCES. ALL VIEWS IN MARKET COMMENTARY ARE THE PERSONAL OPINIONS OF THE AUTHOR.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
