UK property values suffered a sharp month-on-month fall of nearly 3% in this week’s House Price Index, the first time this year that prices have fallen.
The average UK home is now worth £265,000 - while the average London property is priced at £566,614.
The data, analysed by the UK’s biggest online estate agents Purplebricks, shows that while London values soared from March to April 2025, the UK saw an average slump of 2.7%.
The monthly price fall followed changes to stamp duty that came into force from April 1, and which piled more costs onto buyers, particularly at the upper end of the market.
Wednesday’s report from the Office of National Statistics (ONS) will be welcome reading for homeowners in some of the capital’s most expensive areas, which have seen months of continued annual and monthly price drops.
On average, London property prices were up 2.6% month-on-month and 3.3% up annually.
Homes in upmarket Kensington and Chelsea, famed for the E4 reality show and football club, saw prices surge by 9% month-on-month, equivalent to £123,815.
The average home in the star-studded West London borough is now worth a cool £1.34million.
Similarly, the City of London is another area that saw positive prices from March to April this year, with a rise of 7% adding £53,255 to the average property.
The average property in London’s financial heartland will set buyers back around £771,818, according to the HPI report.
And, Westminster homes enjoyed an encouraging month with a 3% increase, worth £28,408, and prices moving to hefty price tag of £946,923 on the average property.
Despite the monthly price rises, homes in all three exclusive London boroughs were worth less in April 2025 than the year before - with Westminster homes hardest hit, losing £144,879.
Throughout the capital, 16 boroughs saw a successful month of price rises while 10 areas saw a month-on-month loss. Seven areas of London saw no price increase whatsoever and stayed exactly the same as last month’s HPI.
The biggest loser this month was located on the London-Essex border in Epping Forest. The area saw a 4% decrease amounting to £22,913 being knocked off property prices.
While London had a prosperous month overall, homes in Hackney homes lost 3% in value, the equivalent of £18,883.
Despite the tough month for many homes in the UK, it has remained a stellar year for property with the average price of a home sitting at £265,000 - a £9,000 rise year-on-year.
April marks the fourth consecutive month of annual price rises for UK properties. Since April 2024, homes have increased by 3.5% over the last calendar year
House prices in England saw an annual price rise of 3%, making the average property worth £286,000 while Wales had a 5.3% increase and homes stood at £210,000 on average.
North of the border in Scotland there was a 5.8% increase, making homes £191,000 on average.
The HPI report also revealed there were fewer UK homes put up for sale in February this year, with nearly 7,000 fewer sold in February 2025 compared to the same time last year.
Tom Evans, sales director at Purplebricks Estate Agency said: “This small monthly decline is little more than a bump in the road - a stumble after April’s stamp duty changes.
“One of the best investments you can make is in bricks and mortar, and most buyers are looking at the long-term when they sign on the dotted line.
“2025 has so far been a great year for the market with continued price rises, which I predict will be back before long.”
Robert Nichols, managing director of Purplebricks Mortgages said: “With 0% deposits, the lowest mortgage rates in two years, the UK is a buyers’ market right now.
“And, rising wages means there are more first-time buyers encouraged to put that all-important first foot on the property ladder.
“Movement at the bottom of the ladder will pay dividends in the long-run, promoting sales further and further up the chain - ultimately nudging prices up over time.”