London homeowners saw a 2.6% rise in average property prices in April 2025, contrasting with a nearly 3% nationwide decline triggered by stamp duty tax increases. Key London boroughs like Kensington and Chelsea led the gains, highlighting the capital’s resilience amid a cooling UK market.
London homeowners have enjoyed a notable boost in property values over the past month, standing out against a nationwide backdrop of declining house prices. According to the latest House Price Index (HPI) data from April 2025, the average property in London increased by 2.6% month-on-month to reach £566,614, while showing a 3.3% gain over the year. This contrasts with the broader UK market, where house prices fell by nearly 3% compared to March, marking the first month-on-month decline this year. The average UK home was valued at £265,497 in April, reflecting a 2.7% decrease from the previous month but a 3.5% increase annually.
The divergence in trends owes much to recent modifications in stamp duty tax, implemented in early April, which raised transaction costs for buyers, especially for pricier homes. The changes effectively reversed the temporary stamp duty holiday seen earlier when thresholds were higher, resulting in a surge of purchases in March followed by a cooling in April. This fiscal adjustment has particularly impacted properties above certain price points, dampening buyer enthusiasm in much of the UK outside London.
London’s affluent boroughs, including Kensington and Chelsea, the City of London, and Westminster, reported impressive monthly price rebounds. Kensington and Chelsea stood out with a 9% increase, adding on average £123,815 to property values, pushing typical prices to £1.34 million. Similarly, the City of London saw a 7% rise, while Westminster enjoyed a 3% uptick. However, despite these short-term gains, all three boroughs still recorded lower property values compared to the same month last year, with Westminster experiencing the sharpest annual decline of 15%, losing nearly £145,000 on average.
Across the capital, 16 boroughs registered increases, 10 faced declines, and seven remained stable. Notably, areas like Epping Forest on the London-Essex border and Hackney saw significant monthly falls of 4% and 3%, respectively, reflecting the uneven nature of the market within London itself.
The broader UK market, meanwhile, exhibits signs of a temporary slowdown linked to the introduced stamp duty changes. The 2.8% monthly drop reported for April marks the steepest decline in nearly four years and pushed the average house price down to £265,000. This cooling has been particularly pronounced in the South West, which recorded a 3.8% monthly decline, with annual growth slowing to just under 1%. Economists largely view this as a short-term correction following heightened activity in March, with some data indicating rising prices resumed in May.
The Office for National Statistics confirmed a halving in the annual house price growth rate in April to 3.5% from 7% in March, reflecting the fiscal policy’s influence on market dynamics. Meanwhile, the rental market continues to experience robust demand, with rents rising by 7% annually, albeit with a slight slowdown in growth over recent months due to persistent supply shortages.
Experts in the property sector remain cautiously optimistic. Analysts from Purplebricks emphasise that the monthly dip is a minor setback following April’s tax changes, suggesting that property remains one of the best long-term investments. Increased wage growth and low mortgage rates with options for zero deposits are expected to stimulate first-time buyer activity, which could, in turn, energise the property market across the board over time.
Regional data also highlight differing trends across the UK. For example, house prices in England rose by about 3% annually, averaging £286,000, while Wales and Scotland saw slightly higher increases of around 5%. Transaction volumes have decreased somewhat compared to last year, but remain robust compared to historical figures. Regional hotspots like Elmbridge, Bromley, and Lewisham enjoyed double-digit annual percentage gains, contrasting with areas like Westminster and the City of London, which saw steep yearly declines.
Overall, while April’s data presents a complex picture of cooling in many UK regions, London’s resilient performance and ongoing demand signals suggest the housing market’s underlying strength may endure beyond the short-term fiscal impacts.
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Source: Noah Wire Services
- https://www.dailymail.co.uk/news/article-14824773/London-monthly-house-price-rise-UK-slump-property.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 – Please view link – unable to able to access data
- https://www.ft.com/content/853cad4f-138a-43cc-ac8d-043d3a082b4a – In April 2025, UK house prices experienced their sharpest monthly decline in almost four years, falling by 2.8% compared to March. This drop, reported by the Land Registry, followed the end of a temporary stamp duty holiday that had previously boosted property transactions. The average house price declined to £265,000, and annual price growth slowed significantly to 3.5% from 7% in March. Stamp duty thresholds reverted to pre-2022 levels on April 1, increasing costs for buyers, particularly first-time purchasers who now pay tax on properties over £300,000, down from £425,000. The South West region experienced the steepest regional fall, with prices down 3.8% for the month and annual growth at just 0.9%. Some economists suggest the dip is temporary and due to earlier activity shifts ahead of the tax changes. Separate data from Nationwide indicates house prices began to rise again in May. In the rental sector, average rents rose 7% annually to £1,339, marking the fifth consecutive month of slowing growth but still reflecting high levels amid a supply shortage.
- https://www.reuters.com/world/uk/uk-house-price-growth-halved-april-ons-says-2025-06-18/ – In April 2025, UK house price growth significantly declined, dropping to an annual rate of 3.5% from 7.0% in March, according to data released by the Office for National Statistics (ONS). This deceleration coincided with the implementation of higher property transaction taxes, which likely influenced the slowdown in the housing market. The data highlights the impact of fiscal policy changes on housing market trends.
- https://www.homebuilding.co.uk/news/house-prices – In April 2025, UK house prices increased by 3.5% year-on-year to an average of £265,000, according to the Office for National Statistics. However, a month-on-month dip occurred due to changes in the stamp duty tax implemented on April 1, 2025. The reforms led to a spike in home purchases in March, temporarily inflating prices, followed by a 2.7% average price drop in April. The tax changes affected properties over £125,000, excluding first-time buyers, impacting particularly England and Northern Ireland. Experts view the dip as a short-term correction rather than a long-term downturn. Despite the April decline, strong buyer demand and a limited housing supply continue to support price growth. Interest rates, held at 4.25% by the Bank of England, are being closely monitored, with potential cuts by year-end possibly boosting the housing market further. Professionals remain cautiously optimistic about the market’s stability and long-term prospects.
- https://www.gov.uk/government/news/uk-house-price-index-for-march-2025 – The UK House Price Index for March 2025 reports that average house prices in the UK rose by 6.4% in the year to March 2025, up from the revised estimate of 5.5% in the 12 months to February 2025. On a non-seasonally adjusted basis, average house prices in the UK increased by 1.1% between February 2025 and March 2025, compared with an increase of 0.2% from the same period 12 months ago (February 2024 and March 2024). The UK Property Transactions Statistics showed that in March 2025, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 177,000. This is 104.3% higher than a year ago (March 2024). Between February 2025 and March 2025, UK transactions increased by 61.7% on a seasonally adjusted basis. House price monthly increase was highest in The North East where prices increased by 4.2% in the year to March 2025. The highest annual growth was in the The North East, where prices increased by 14.3% in the year to March 2025.
- https://www.gov.uk/government/statistics/uk-house-price-index-for-march-2025/uk-house-price-index-england-march-2025 – In March 2025, average house prices in England increased by 6.7% in the 12 months to March 2025, up from 5.4% in the 12 months to February 2025. In London, average house prices increased by 0.8% in the 12 months to March 2025, down from a price increase of 1.4% in the 12 months to February 2025. The data highlights regional variations in house price growth across England and London.
- https://www.gov.uk/government/statistics/uk-house-price-index-for-march-2025/uk-house-price-index-summary-march-2025 – The UK House Price Index summary for March 2025 reports that the average price of a property in the UK was £271,000. The annual price change for a property in the UK was 6.4%, and the monthly price change for a property in the UK was 1.1%. The monthly index figure (January 2023 = 100) for the UK was 104.0. Estimates for the most recent months are provisional and are likely to be updated as more data is incorporated into the index.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative presents recent data on London’s property market, including April 2025 figures. The earliest known publication date of similar content is April 2025, indicating freshness. The report cites a press release from the UK House Price Index for March 2025, which typically warrants a high freshness score. However, the narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Additionally, the narrative mentions a 3.3% annual gain in London house prices, which aligns with the 0.8% annual increase reported for March 2025. This discrepancy suggests potential inconsistencies in the data presented. The report also references a 2.6% month-on-month increase in April 2025, but the UK House Price Index for March 2025 indicates a 0.3% decrease in London house prices since January 2025. This suggests that the reported 2.6% increase may be based on different data or a different timeframe, raising questions about the accuracy of the figures presented. Furthermore, the narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The inclusion of updated data alongside older material may lead to confusion and misinterpretation of the housing market’s current state.
Quotes check
Score:
7
Notes:
The narrative includes direct quotes from analysts and experts. However, the earliest known usage of these quotes cannot be determined from the available information, making it challenging to assess their originality. The lack of verifiable sources for these quotes raises concerns about their authenticity and potential reuse. The absence of online matches for these quotes suggests they may be original or exclusive content, but without verification, this remains uncertain.
Source reliability
Score:
6
Notes:
The narrative originates from the Daily Mail, a reputable UK newspaper. However, the specific article cannot be accessed due to restrictions, making it difficult to assess the reliability of the information presented. The reliance on a single source without cross-referencing with other reputable outlets raises concerns about the comprehensiveness and accuracy of the information. The inability to verify the content from the Daily Mail further diminishes the overall reliability of the report.
Plausability check
Score:
5
Notes:
The narrative presents claims about London’s property market, including a 2.6% month-on-month increase in April 2025 and a 3.3% annual gain. However, these figures conflict with the UK House Price Index for March 2025, which reports a 0.3% decrease in London house prices since January 2025. The lack of supporting detail from other reputable outlets and the presence of conflicting data raise questions about the plausibility of the claims. The absence of specific factual anchors, such as names, institutions, and dates, further diminishes the credibility of the report. The language and tone of the narrative are consistent with typical media reporting, but the inconsistencies in data and lack of verifiable sources warrant further scrutiny.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative presents conflicting data and relies on unverifiable quotes and sources, raising significant concerns about its accuracy and reliability. The discrepancies in reported figures and the inability to access the original source material diminish the overall credibility of the report. The lack of supporting detail from other reputable outlets and the presence of conflicting data further undermine the plausibility of the claims made.
