Property Market Updates: Q1

National view

The UK property market is stepping into spring with renewed energy, as average asking prices rose by 1.1% (+£3,876) to £371,870 this month, according to Rightmove’s latest House Price Index. This seasonal uplift is in line with typical March trends and suggests that sellers are pricing sensibly in a competitive market; in fact, the market is the most competitive we’ve seen in over a decade.

Buyer demand is also gaining traction. While the current wave of spring movers won’t have beaten this month’s stamp duty deadline, they will benefit from the highest number of available properties for sale at this time of year since 2015. The number of sales agreed is now 9% higher than this time last year, reflecting growing confidence among buyers even in the face of global uncertainties.

On the supply side, the market is equally strong, with new seller listings up 8% year-on-year. Regarding annual capital growth, Zoopla reports that semi-detached homes are leading the way, rising 2.6% (or £6,820) to an average of £274,100.

All of this comes together to point to a resilient and active market as we transition into summer, which should be encouraging news for both those looking to sell and those planning their next move. 

London

London’s property market has maintained strong momentum into the first months of 2025, building on the exceptional sales performance seen throughout last year. Rightmove reports that average asking prices in the capital have increased by 1% month-on-month and 1.3% year-on-year, bringing the average to £695,885. Homes are currently taking an average of 69 days to find a buyer, reflecting steady demand in a market that remains highly dynamic.

Despite ongoing economic and political uncertainty, appetite for quality homes in prime locations remains unwavering. Buyers continue to view London as a secure long-term investment, even as anticipated interest rate reductions have been more modest than expected. Techniques aimed at improving Capital Gains Tax efficiency are also helping to stimulate movement, particularly among investors.

Emerging hotspots such as Elephant & Castle are seeing noticeable surges in activity, driven by regeneration schemes and strong value growth potential. In East London, new build developments continue to draw international interest, with Turkish buyers among the most active, viewing London property as a safe and stable asset class.

Second-hand stock, particularly homes between 8 and 15 years old, is also entering the market in greater volume. These properties are typically completing within 16 weeks, highlighting a healthy pace of transaction and sustained buyer engagement as we head into summer.

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