The UK property market continues to demonstrate resilience despite a recent slowdown in house price growth. Annual house price inflation moderated to 3.4% in April, indicating a shift toward more sustainable growth levels. While buyer demand has softened slightly due to seasonal factors and rising economic uncertainty, it remains relatively strong. At the same time, an increase in housing supply is improving buyer choice and helping to keep prices in check.
Looking ahead, house price inflation is expected to continue slowing in the coming months. However, transaction volumes are projected to rise, supported by ongoing buyer interest and the prospect of lower base interest rates in 2025. In addition, mortgage lenders are beginning to adjust affordability stress testing, which could enhance purchasing power by an estimated 15–20%. This development is likely to bolster demand and support sales activity, even if it does not significantly impact house prices.
