House prices have been edging lower over recent months, with this trend continuing in May 2025, as the average sale price of a home in England and Wales dipped by a further 0.1% in the month to £357,900 according to e.surv.

Annual price comparisons have remained relatively unchanged over recent months, with average prices currently 1.4% lower than a year ago, according to Acadata figures.

Rob Owens, Head of Research, said: “Recent stamp duty changes in England and Northern Ireland have caused a sharp disruption in the usual flow of property transactions, with activity spiking before the changes and dropping sharply afterward.

“However, the impact on house prices has been far more subdued. Regionally, London continues to experience the steepest declines, though the pace of these falls is easing. Meanwhile, northern regions and the Midlands, which had previously hit record highs, are now seeing slight price corrections.

“Despite the tax-driven slowdown, there are signs of resilience. Eased mortgage affordability rules and expectations of falling interest rates could help offset affordability pressures, especially in the South.

“Looking ahead, the upcoming June 11 Spending Review may bring new housing policy announcements, including potential boosts to affordable housing and support for first-time buyers. While the market remains soft in the short term, these developments suggest a more positive outlook for the second half of 2025.”