Spring Surge: What’s Happening with House Prices This Month?

Spring Surge: What’s Happening with House Prices This Month?

As we enter the heart of the spring selling season—traditionally the busiest time of year for the housing market—buyers and sellers alike are closely watching price movements and market trends. Our latest House Price Index reveals that the average property price has risen by 1.1% (+£3,876) this month, reaching £371,870. This aligns with the typical seasonal increase, suggesting that sellers are setting realistic expectations in a market filled with opportunity.

What’s Driving House Price Growth?

Historical trends indicate that February and March are prime months for sellers to list their homes, as properties launched during this period have the highest likelihood of finding a buyer. This seasonal uptick encourages sellers to set competitive asking prices, capitalising on increased market activity.

However, with the number of homes for sale at its highest level in a decade, buyers have more choice than in previous years. This increased competition among sellers means that pricing strategy and property presentation are more important than ever. Notably, the “top-of-the-ladder” market—comprising four-bedroom detached homes and larger properties—has seen the biggest price rise this month, with a 2.1% increase. In contrast, first-time buyer properties have recorded a more modest 0.5% rise.

Stamp Duty Deadline: The Final Sprint

As the end of March stamp duty deadline approaches, a backlog of 575,000 homes is still navigating the conveyancing process. Many buyers could face thousands of pounds in unexpected costs if they miss the cut-off. Our analysis suggests that around 74,000 transactions, including 25,000 first-time buyer moves, will complete in April rather than before the deadline—potentially incurring a combined £142 million in additional tax.

With no clear signs of an extension, all eyes are on the upcoming Chancellor’s Spring Statement. A short deadline extension could provide much-needed relief for those who anticipated completing their move in time but have been caught in conveyancing delays.

Expert Insights on the Market

Despite the uncertainty surrounding tax changes, market fundamentals remain strong. More sellers are entering the market, and buyer activity continues to build momentum.

“March is historically one of the strongest months for sellers, but with a decade-high number of properties on the market, competition is fierce. Sellers who price competitively and present their home well are seeing the best success.”

Mortgage affordability remains a crucial factor influencing buyer demand.

“Lenders are still competing for business with attractive mortgage rates, but global economic volatility is causing small rate fluctuations week by week.”

What Else is Happening in the Market?

The housing market is showing resilience, with the number of agreed sales up by 9% compared to this time last year. Similarly, the number of new sellers has risen by 8%, signalling a healthy level of activity heading into the second quarter of 2025.

For buyers entering the market post-stamp duty changes, the good news is that they will find the best selection of available properties at this time of year since 2015. While this creates a more balanced market, sellers must remain realistic with their pricing to attract serious buyers.

Mortgage rates remain a key consideration, with the average five-year fixed mortgage rate currently at 4.74%. While this is lower than the peak of 6.11% in July 2023, it remains only slightly below last year’s 4.84%. Buyers should keep a close eye on rate trends when planning their next move.

Final Thoughts

The spring market is in full swing, with strong levels of buyer and seller activity driving movement. While sellers are benefiting from seasonally high demand, they must also navigate increased competition. Buyers, on the other hand, have more choice than in previous years but need to remain mindful of mortgage affordability. As always, strategic pricing, a well-presented property, and an informed approach to financing will be the keys to success in today’s housing market.

If you're considering buying or selling, our team at McDonalds Estate Agent is here to help. Get in touch to discuss your options and make the most of the current market conditions.

Adapted from Rightmove