UK Housing Market Defies Expectations, Asking Prices Hit Records

Despite the end of a key tax break that many thought would cool the market, UK property asking prices have climbed to a fresh record, according to the latest data from the property website Rightmove.

The average home now carries a price tag of £377,182 ($494,448), up 1.3% compared with last year and outstripping the previous peak set in May 2024.

A Strong Spring Surprise

The property website reported prices jumped 1.4% between 9 March and 5 April, a bigger spike than usual for this time of year. That comes as more buyers and sellers pile into the market, defying earlier predictions of a slowdown.

This stands in contrast to other recent indicators. Just last week Halifax reported a 0.5% monthly slide in house prices while Bank of England (BoE) data showed mortgage approvals hitting a six-month low ahead of the tax changes.

Until 31 March, buyers were racing to complete purchases before a temporary tax break on property purchases expired. Rightmove confirmed agreed sales have dipped since the deadline passed, but demand has not collapsed. In fact, the number of new prospective buyers is still 5% higher than a year ago, and available homes for sale have surged 4%.

Could Trump’s Trade Policies Help UK Housing Market?

Rightmove also pointed to an unexpected wildcard: US President Donald Trump’s tariff policies. Although the full hit is not yet clear, if trade tensions force the BoE to slash interest rates faster, borrowing costs could tank, giving the housing market another boost.

Financial markets are betting on more aggressive rate cuts, pricing in three quarter-point reductions this year, up from two before Trump’s tariff announcements.

Even though the BoE started cutting rates in August 2024, it has taken a cautious approach. As such, mortgage rates have only inched downward. The average five-year fixed-rate mortgage now sits at 4.72%, versus 4.84% a year ago.

Conclusion

The market is holding up better than many expected. As more homes go for sale alongside steady demand, prices are not showing signs of a meaningful fall, at least not yet. If interest rates fall further, affordability could progress, keeping the momentum going.

But as always in real estate, the only certainty is uncertainty. Buyers and sellers will be watching closely to see if this resilience lasts or if the market finally starts to cool off.