Average house prices appear to have increased in the aftermath of the Stamp Duty changes, Land Registry data suggests.
The latest Land Registry House Price Index for May shows the average annual rate of house price growth in May was up 3.9% from 3.6% in April.
The annual growth figure had effectively halved in April, coinciding with a drop in Stamp Duty thresholds.
On a non-seasonally adjusted basis, average UK house prices increased by 1.1% between April 2025 and May 2025, compared with an increase of 0.8% in the same period 12 months ago. On a seasonally adjusted basis, average house prices in the UK increased by 0.7% between April 2025 and May 2025.
This puts the average UK house price at £268.652.
Average UK house prices in the 12 months to May 2025 increased 3.4% in England, by 5.1% in Wales and by 6.4% in Scotland.
Average prices were up 9.5% in Northern Ireland, according to the index.
Of the English regions, annual house price inflation was highest in the North East, where prices increased by 6.3% in the 12 months to May 2025. The South West was the English region with the lowest annual inflation, where prices increased by 1.9% in the 12 months to May 2025.
It comes amid warnings of a house price slump due to higher Stamp Duty costs and economic concerns.
Recent Nationwide and Halifax indices have suggested that price growth is slowing.
Jason Tebb, president of OnTheMarket, said “although historic, the data shows house values continued to rise on an annual basis in May, with the average property price £10,000 higher than a year ago, even though affordability remains a challenge and is keeping prices in check to an extent.
The market continues to demonstrate remarkable resilience, assisted by four interest rate reductions since last August. These cuts, with the suggestion of more to come, have boosted buyer and seller confidence, increasing activity in the market and benefiting the wider economy. The unexpected increase in inflation to 3.6 per cent in June may persuade the Bank to pause with regard to further reductions, although much depends on other economic data such as the jobs market. With mortgage lending rules being relaxed to assist buyers with affordability and boost first-time buyer numbers, there is recognition that it is a struggle to get on the housing ladder but only time will tell if these measures are enough to make a real difference.”
Verona Frankish, chief executive of Yopa, said the latest house price figures for May demonstrate a market that is “very much on the front foot and ready to build on the momentum gained in recent months, particularly now that the distraction of another Stamp Duty deadline is behind us. This underlying resilience provides a solid platform for future growth, which will only be strengthened by the announcement this week of the Government’s mortgage market reforms.
By easing mortgage lending criteria, these changes will broaden access to finance, helping to attract more buyers into the market and support continued house price growth over the remainder of the year and beyond.”
Nick Leeming, chairman of Jackson-Stops, added “the market is readjusting following an accelerated start to spring and a shift in buyer sentiment, as broader economic factors take hold during a typically quieter seasonal period for the market. Ultimately, good property priced correctly will sell – but in the current climate, it’s more important than ever for sellers to listen to agent advice on pricing. Many vendors now entering the market bought in very different conditions and may need to adjust their expectations. While there is a healthy level of stock, the market would benefit from more active buyers.
Looking ahead, the expectation is that activity remains steady into the mid-year market. The market still has a strong contingent of committed lifestyle buyers which is being supported by the ‘must movers’.”