House Prices: Slowing, Not Stopping.

According to Zoopla’s latest data, UK house price inflation stands at 1.6% year-on-year as of March 2025. That's up from just 0.2% this time last year but down from 1.9% at the end of 2024. So yes...prices are still rising, just at a slower pace.

Here’s the interesting part: we’re not seeing a crash. Instead, we're seeing more balance. Buyer demand has dipped in recent weeks... this could be partly seasonal, partly due to macroeconomic uncertainty...but sales agreed are actually 6% higher than this time last year. Supply is up 12%.

What does this mean? More choice for buyers, more realistic pricing for sellers.

The North-South Divide Widens

Price growth is stronger in the Midlands, North, Scotland and Northern Ireland...ranging from 2.2% to 6%. Meanwhile, southern regions are seeing flatter growth (0.5%–1%) as affordability is tougher. Places like Belfast, Liverpool and Newcastle are leading in momentum...a clear sign that regional investment continues to hold strong potential.

What’s Driving the Market?

One of the biggest potential shifts ahead? Changes to mortgage stress testing. Lenders are starting to relax how they assess affordability...meaning buying power could increase by 15–20% if stress rates drop from 8.5% to more realistic levels like 6.5%.

That doesn’t mean we’ll see house prices surge...but it could mean more buyers re-entering the market and unlocking some of the stagnant stock.

Regional Breakdown: The North Holds Strong

Here's how average house prices stack up across the UK:

England: £292,000 (+5.3% YoY)

Wales: £207,000 (+4.1% YoY)

Scotland: £186,000 (+5.7% YoY)

Northern Ireland: £183,000 (+9.0% YoY)



Within England:

North West: £185,000 (8.0% YoY increase)

London: £534,200 (1.7% YoY increase)

The North West leads in annual price growth, while London sees more modest increases, reflecting affordability constraints in the capital.

So… What Should You Be Doing?

Here’s my take:

Buyers – If you’re waiting for a crash, you may be waiting a long time. With more choice and steadier prices, this could be your window to move...especially before rates drop and competition returns.

Sellers – Realism wins. Properties are selling, but buyers are savvier than ever. If your pricing doesn’t reflect the current conditions, expect a slow sale.

Investors – Northern cities and smaller regions still have headroom for growth. Think beyond your doorstep. Look at where real demand still exists.

Final Word

This isn’t a boom. It’s not a bust either. It’s a stabilising market...and that creates real opportunity for those who are clear on their strategy.

As always, if you want to talk specifics...whether you're looking to invest, exit, or restructure...I’m happy to share what I’m seeing.

More updates soon.

Contact me via charlie@charliepanayi.com or @charlie_panayi

Information generated from Zoopla, Rightmove and general knowledge of market.