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Halifax House Price Index reveals UK house prices fell by -0.5% in March

ended 07. April 2025

UK house prices fell by -0.5% in March, a drop of £1,575. Despite this, according to the Halifax, the annual growth rate remained steady at +2.8%, with the typical UK property now valued at £296,699.

Amanda Bryden, Head of Mortgages, Halifax, said: "UK house prices fell by -0.5% in March, a drop of £1,575. Despite this, the annual growth rate remained steady at +2.8%, with the typical UK property now valued at £296,699.

“House prices rose in January as buyers rushed to beat the March stamp duty deadline. However, with those deals now completing, demand is returning to normal and new applications slowing. Our customers completed more house sales in March than in January and February combined, including the busiest single day on record. Following this burst of activity, house prices, which remain near record highs, unsurprisingly fell back last month.

“Looking ahead, potential buyers still face challenges from the new normal of higher borrowing costs, a limited supply of available properties to choose from, and an uncertain economic outlook.

“However, with further base rate cuts anticipated alongside positive wage growth, mortgage affordability should continue to improve gradually, and therefore we still expect a modest rise in house prices this year."

Newspage asked property market experts for their views, below.

8 responses from the Newspage community

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Michelle Lawson
Director at Lawson Financial
These figures are a small drop in the ocean and could be seasonal and Stamp Duty-related. Lower interest rates resulting from the Trump tornado could be just the news borrowers in the UK have been waiting for to really ignite the mortgage market which will drive house prices through demand back up.
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Daniel Hobbs
CEO at New Leaf Distribution
With markets now betting the Bank of England will be cutting rates in May following the chaos in the markets caused by Trump's Liberation Day speech, the property market could be set to benefit. Demand dropped off once the stamp duty deadline was effectively behind us based on this evidence but the direction of swap rates on Thursday and Friday could see things pick up quickly. Many brokers are expecting lenders to make a move and announce rate cuts this week. If that proves the case, demand could surge. Even aside from Trump, many first-time buyers are clambering to escape a rental market where prices are extortionately high and this looks set to continue.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
If we get a rate cut in May, which is looking much more likely after Trump’s Liberation Day speech, demand could really start to go through the gears. Trump may be causing carnage in the markets but swap rates have fallen noticeably and this could translate into lower mortgage rates in the days and weeks ahead, stimulating demand. Many expected March to be a middling month as the rush to beat the stamp duty deadline subsided. In our experience, though, it was quite the opposite. First-time buyers have remained particularly active and are as keen as ever to escape the financial torment of the rental market. They know that getting onto the ladder still has value despite the fact that they may have missed out on savings.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
After a sprinting start to the year, the housing market has paused for breath. March saw prices dip 0.5%, proof that even bricks and mortar need a breather. But with mortgage rates softening and pay packets rising, don’t be surprised if the market laces up for another jog later this year
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Riz Malik
Independent Financial Adviser at R3 Wealth
Following market movements towards the end of last week as a result of Liberation Day, we could see some serious cuts in fixed rate pricing this week. If borrowing costs do come down, the house price decline looks set to reverse as market activity increases.
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Craig Fish
Director at Lodestone Mortgages
This is clear evidence that the stamp duty rush is over, but with Trumponomics wreaking havoc with financial markets around the world, we could be about to see a vast drop off in mortgage pricing. This, coupled with increasing wage packets, could see the housing market enter a boom period and the decline in house prices reverse.
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Justin Moy
Managing Director at EHF Mortgages
With the stamp duty threshold change now in place, it was inevitable that the property market eased back, and with some impending rate changes on the horizon, buyers might just hold out a little longer to see how this will benefit them. First-time buyers remain busy looking for an opportunity to exit the rental market, but overall the market will slow over the coming months as everyone take stock of the situation.
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Harry Goodliffe
Director at HTG Mortgages
Trump might’ve just kickstarted the UK housing market. His Liberation Day has pushed swap rates down, and with markets now expecting multiple rate cuts, cheaper mortgages could be on the horizon. March’s small price drop is just the calm before the storm. If rates fall, expect buyers to come off the sidelines. This could be the start of a busy summer.