House prices fell by 0.6% in April as the market calmed following the stamp duty deadline rush.
The latest data from Nationwide showed over the last year house prices have increased by 3.4% – but this is a slower rate of growth than the 3.9% experienced in March.
It means the average UK property price according to Nationwide is £270,752 – a little lower than March’s £271,316.
Robert Gardner, chief economist at Nationwide, said: “The softening in house price growth was to be expected, given the changes to stamp duty at the start of the month.
“Early indications suggest there was a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations.
“The market is likely to remain a little soft in the coming months, following the pattern typically observed following the end of stamp duty holidays.
“Nevertheless, activity is likely to pick up steadily as summer progresses, despite wider economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive.”
The stamp duty change happened on 1 April when the thresholds at which buyers pay the tax lowered. It meant many first-time buyers – especially in areas of higher house prices – became liable for the tax overnight. It also meant other buyers had to pay tax on a larger proportion of their properties.
According to HMRC the number of property transactions in March 2025 soared by 104% compared to the same month in 2024 and were 62% higher than in February 2025 as buyers rushed to make their purchase before the stamp duty changes took effect.
Karen Noye, mortgage expert at Quilter, said this was a ‘textbook example’ of how stamp duty changes can artificially distort housing market activity.
But, she said, Nationwide’s figures showed the ‘true ramifications’ of the stamp duty changes.
“These figures reflect a market adjusting to life after the stamp duty change,” she said. “Given the time it typically takes to complete a property purchase, the vast majority of transactions benefiting from the old rates were agreed earlier in the year.
“The April price data is the first clean readout of post-change demand and it suggests that once the incentive disappeared prices have slipped.”
