House prices have surged to a new record high, defying expectations amidst shifts in the property market.
According to Rightmove, the average asking price for a home in Britain reached £377,182 in April, a substantial £5,312 increase from March. This 1.4% leap surpasses the typical 1.2% April uptick, marking a significant jump in property values.
This record comes despite recent changes to stamp duty regulations, which became less generous for some buyers in England and Northern Ireland starting April 1st. H
owever, potential homebuyers may find some relief in the recent dip in mortgage rates, with some lenders, including Barclays, cutting rates below 4%. This shift in the mortgage landscape could potentially offset the impact of the stamp duty changes and influence market activity in the coming months.
Global market volatility, after US President Donald Trump announced tariffs, has fuelled analysts’ expectations that the Bank of England could make more base rate cuts in the months ahead.
April’s average asking price figure surpassed a previous record of £375,131, set in May 2024.
Rightmove said that, when setting their asking price, new sellers still need to be cautious of the high competition for buyers.
Colleen Babcock, a property expert at Rightmove said: “We’ve seen our first price record in nearly a year, despite the number of homes for sale being at a decade high.
“The increased choice seems to be bringing more movers into the market, with both buyer and seller numbers up as the market remains resilient.
“Confidence from new sellers is a good sign for the overall health of the market, but they do need to be careful when setting their asking price.
“The high level of supply in the market right now means that buyers are likely to have plenty of homes in their area to choose from, and an overpriced home will stick out for the wrong reasons.
“Our research also shows that getting the price right the first time is key. Homes that don’t need a reduction in price are more likely to find a buyer, and to find that buyer in less than half the time.”
Since the stamp duty increase, the level of agreed sales falling through has remained steady, according to Rightmove.
The website said this indicates that there has been “no major pull-out” from agreed deals by first-time buyers and home-movers who were unable to complete before the tax rise.
The last-minute rush to complete sales from those who were able to beat the deadline also means that the queue of buyers waiting to complete their purchase eased during March, the website said – marking the first time the queue has shortened during the month of March since the coronavirus pandemic in 2020.
However, the queue of buyers has now started to tick up again, Rightmove said.
The website also said it is seeing a North/South divide in terms of trends.
The majority of the Midlands and northern England regions, as well as Wales and Scotland, are seeing above-average increases in demand versus last year.
By contrast, the higher-priced South West and South East are seeing smaller increases in buyer demand and prices, Rightmove said.
It said London appears to be an outlier. Despite being the only region with fewer buyer inquiries than a year ago, average asking prices in the capital have jumped to a new record high, driven by inner London, Rightmove said.
But it added that, with London typically being more exposed to the impact of global tensions, as well as currently seeing weaker demand trends, this price trend may fall back.
The average asking price in London in April is just shy of £700,000, at £699,200.
Rightmove said the full impacts of tariffs will play out over the coming weeks and months, and if the Bank of England opts for further and faster rate cuts, starting in May, this could lead to mortgage rates reducing more quickly than anticipated.
Ms Babcock added: “It’s important to remember that among records and national trends, Great Britain’s housing market is made up of thousands of diverse local markets, each uniquely responding to market changes and world events.
“London, for example, is likely to see greater knock-on effects from US tariffs than the rest of Great Britain, while northern regions appear to be performing more strongly post-stamp duty rise.
“It’s difficult to predict what the next few months will bring, but if mortgage rates reduce more quickly, it would be a helpful boost to buyer affordability.”
Phill Sandbach, director at estate agent John German in the Midlands, said: “March was a very busy month, with more completions than in the post-pandemic stamp duty holiday.
“Solicitors worked really hard to get so many movers through. April has started off as a busy month for us, with market appraisal requests, viewings and offers across all of our East and West Midlands offices.”