UK house prices remained stagnant last month, with London experiencing the lowest price growth nationally. Meanwhile, thousands of British citizens rushed to finalize their purchases before the stamp duty holiday deadline.

The average home price stayed consistent at £271,316 in March, unchanged from the 0.4% monthly increase in February, according to Nationwide Building Society.

The annual growth rate remained constant at 3.9%, despite significant regional disparities. Northern Ireland witnessed an acceleration in annual price growth to 13.5%, its highest figure since 2021. Scotland and Wales saw annual rises of 3.9% and 3.6%, respectively.

London recorded the lowest annual UK house price growth, decreasing to 1.9% from 2%. Despite being the most expensive place to buy, with an average house price of £529,369, Northern Ireland remained the cheapest region at an average of £205,796.

Robert Gardner, Nationwide’s chief economist, indicated that the price trends were anticipated due to the stamp duty holiday’s closure at the end of March.

“Given that the stamp duty holiday concluded at the end of March, the market is expected to remain subdued in the coming months as buyers continue to complete purchases to avoid additional tax liabilities – a common trend post-stamp duty holiday,” he explained.

With purchases surging in the recent months and removals firms overwhelmed, the reinstated stamp duty thresholds as of 31st March have resulted in potentially higher tax costs for some buyers, often taking longer than a month to finalize.

Activity should gradually increase as summer progresses, despite economic uncertainties, thanks to strong underlying conditions for UK homebuyers, including low unemployment and rising earnings, concluded Gardner.

The uncertainty in global markets notwithstanding, semi-detached houses have seen the most substantial price rises, with their average value up 4.8% over the past year, according to the Nationwide report.