Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
ONS Data Shows UK House Price Growth Stalls, Rents Continue to Rise
UK house price growth stalled in March, according to the latest figures from the Office for National Statistics (ONS). Annual house price growth eased sharply, with average prices broadly unchanged in the 12 months to March, compared to a 1.7% increase recorded in February. This marks the weakest rate of house price inflation since April 2024.
Meanwhile, rental inflation continued to edge higher. Average UK private rents rose by 3.5% in the year to April, up slightly from 3.4% in March. This underlines the continued pressure facing tenants across the private rented sector.
Industry figures noted that property values were flat on an annual basis in April, with the average price unchanged from a year ago. Regional differences were highlighted, with London seeing a 2.1% fall in values in the 12 months to March. This was attributed to a greater supply of stock and continued affordability challenges in the capital.
The data also indicated that affordability pressures and higher borrowing costs are keeping buyers highly price conscious. Buyers are approaching decisions more cautiously and are increasingly prepared to negotiate on pricing, particularly where properties are perceived to be overpriced or require additional investment. This is limiting upward pressure on values and, in some areas, contributing to modest price adjustments.
For letting agents and inventory clerks, the continued rise in private rents and the subdued house price growth may impact tenant turnover and property management strategies. The market is operating with less urgency compared to last year, with a greater emphasis on value and a more competitive environment for sellers.
Source: Property Industry Eye