House price growth in the UK is slowing as buyer demand relaxes, according to the latest Zoopla House Price Index.
Average house prices increased by 1.6 per cent over the last 12 months to March 2025, down from 1.9 per cent at the end of 2024.
Despite the slowdown, current growth remains higher than the 0.2 per cent recorded a year ago.
The average UK home now costs £268,000, representing an increase of £4,270 over the past year.
The average UK house price now sits at £268,000
PAThe property website reports that the end of stamp duty reliefs and a seasonal slowdown over Easter have contributed to quieter market conditions. Buyer demand is now just one per cent higher than a year ago, compared to 10 per cent higher earlier this year.
The housing market is seeing a significant increase in available properties, with 12 per cent more homes for sale compared to last year. Sales have also increased, with six per cent more sales agreed than a year ago.
Zoopla expects house price growth to slow further in the coming months. However, sales are predicted to continue increasing as lower interest rates support market activity throughout 2025.
Regional house price growth shows a clear North-South divide, with northern areas outperforming the South. Prices are also increasing at a faster rate, between 2.2 and three per cent, across the West Midlands, northern regions, Wales and Scotland.
The North West and North East have both seen 10 per cent increases in agreed sales.
More affordable house prices in these areas make home buying accessible to more households, helping to drive momentum. In contrast, the southern parts of England are experiencing much slower growth, at a rate of less than one per cent.
These southern regions continue to feel the after-effects of the recent stamp duty holiday, with stretched affordability remaining a significant factor holding back demand.
Executive director at Zoopla Richard Donnell remains cautiously optimistic about the market outlook.
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The North West and North East have seen a 10 per cent increase in agreed sales
GETTYHe said: "The housing market continues to see sellers listing their homes for sale, which is supporting continued growth in the number of sales. This reflects a group of determined movers who remain active despite a backdrop of economic uncertainty and shifting sentiment.
"While house price growth is expected to slow further, towards one to 1.5 per cent, we're still on course for a five per cent uplift in sales volumes in 2025, assuming sellers remain pragmatic on pricing. Regions where affordability is better aligned to local incomes, particularly across the North and Midlands, are set to lead this recovery.
"One of the biggest supporters of continued market activity lies with mortgage lenders. Revisions to how lenders are assessing mortgage affordability will unlock additional buying power and support sales volumes to help tackle the healthy stock of homes for sale."
For individuals looking to sell their property, an expert has shared exclusive tips with GB News to help homeowners achieve a swift sale.
