Are House Prices Going Down?
Are house prices going down in the UK? Well, according to the lates Halifax property price index, UK house prices fell by 0.5% in March 2025, with average property prices now £296,699! In this article, I will go through the new data released by Halifax and offer a mortgage broker’s perspective on the changing property and mortgage landscape in 2025.
Are House Prices Going Down? UK House Prices Fall in March 2025
UK house prices dipped by 0.5% in March 2025, according to the latest Halifax House Price Index, raising the question many are asking: Are house prices going down in the UK? The average house price has dropped by £1,575, with UK property prices now averaging £296,699. This marks a modest cooling in the market after a steady start to the year.
Despite the monthly fall, year-on-year property price growth remains at 2.8%, unchanged from February 2025. Could this be a sign that while prices may be softening in the short term, the market still holds underlying strength?
Regional House Price Trends: Strong Growth Outside the Capital
While the national average suggests a slowdown, several regions are still seeing robust house price increases:
- Northern Ireland: Leading the UK with a 6.6% annual rise in property prices
- Scotland: Home prices rose by 4.3%, up from 3.8% in February. The average house price is now £213,750
- Wales: Property prices increased 3.7% in March to £227,332
- Yorkshire and the Humber: Annual growth of 4.2%, with homes averaging £215,807
In contrast, London, where our head office is based, property prices are growing at the slowest rate in the UK, with annual growth falling from 1.5% to 1.1%. However, the capital still holds the highest average house price, at £543,370 for obvious reasons!
The 2025 UK Mortgage Market
Alongside house price shifts, the UK mortgage market in 2025 is showing signs of stabilising. With interest rates levelling off and lenders becoming more competitive, there’s a growing opportunity for buyers to secure better deals. Mortgage providers have begun lowering fixed-rate mortgage products, while showing more flexibility in income multiples and loan-to-value (LTV) ratios.
According to Louis Mason, Marketing and Communications Director at Oportfolio Mortgages:
“Despite the slight drop in average house prices, we’re seeing strong interest from clients looking to take advantage of the improved mortgage deals now available. The market is more accessible than it was a year ago, especially for those with a solid deposit and good credit history. At Oportfolio, we’re helping clients to understand this shifting landscape every day, and to find the most competitive mortgage products for their needs.”
Are House Prices Going to Keep Falling?
Of course, any regular readers of our blogs and articles will know that the property market and mortgage market can be very unpredictable, and no one in this industry is psychic…however, the short answer: Not necessarily. While house prices have dipped slightly, regional variation and stabilised annual growth suggest the market is adjusting rather than collapsing in our eyes. Buyers may find opportunities in areas with slower growth, while sellers in regions like Northern Ireland and Scotland may continue to benefit from rising demand.
The outlook for the rest of 2025 will depend on key factors including:
- The Bank of England’s interest rate decisions
- General economic stability and inflation
- Buyer confidence and mortgage accessibility
Thinking About Buying a Property in 2025?
If you’re planning to buy a home, move house, or invest in property in 2025, now is the time to start preparing. The mortgage landscape is shifting, and having the right guidance can make all the difference. Contact us at Oportfolio Mortgages today to speak to one of our expert mortgage advisors. We’re here to help!
