FX.co ★ UK House Price Growth Steady at 3.9%

The UK Nationwide House Price Index experienced a 3.9% increase year-on-year in March 2025, maintaining the same growth rate as observed in February. Month-on-month, house prices remained unchanged, following a 0.4% increase in February and falling short of the anticipated 0.2% rise. Robert Gardner, the Chief Economist at Nationwide, indicated that the housing market might stay subdued in the near term. This is attributed to buyers advancing their activities to circumvent additional tax liabilities, a trend historically noted following stamp duty holiday periods. Nevertheless, as summer unfolds, a gradual enhancement in market activity is anticipated. This optimism is backed by several advantageous factors for UK homebuyers: low unemployment levels, an increase in real wages, solid household financial standing, and a possible reduction in borrowing costs if there is a decrease in the Bank Rate. On a quarterly comparison, house prices have surged by 3.9% compared to the previous year. Northern Ireland emerged as the leader, showcasing a substantial 13.5% annual growth, which is more than twice the growth rate of the next highest region in Q1, marking its most robust performance since 2021. Meanwhile, Scotland recorded a 3.9% increase, with Wales close behind at 3.6%.