UK house prices dropped by 0.6% month-on-month in April, according to new data released by Nationwide. The fall comes after the recent changes to stamp duty thresholds. These changes went into effect on April 1 and have severely shaken up market dynamics. Robert Gardener, chief economist for Nationwide, noted a “remarkable surge” in existing home sales in March. For what we might expect in April, this wave stands in extreme contrast.
Annual house price growth is continuing to slow, with the average house price now at £270,752 –0955 a7251,a984. Even with the recent decline, homes are still 3.4% higher than they were a year ago. Ashley Webb from Capital Economics underlined that this April decline is the biggest monthly drop since August 2023.
She warned that the housing market will likely continue to be “a little soft in the next few months.” He said growing income might fuel more purchasing in the market. Expected reductions in interest rates might have added to that increase, especially in the summer months.
Deputy Chancellor Rachel Reeves increased the stamp duty thresholds in her October Budget. She cut the entry level for first-time buyers from £250,000 to £125,000. Because of these changes, first-time buyers now pay stamp duty on homes valued over £300,000.
With cash buyers making up nearly a third of home sales, their impact on housing market trends is non-trivial. House prices Webb also predicts a 3.5% increase in house prices this year and 4.5% growth in 2026. He also noted that “with the anticipation of further rate cuts and mortgage provider competition, we expect to see the market accelerate through the gears over the remainder of the year.”