Watford & Hertfordshire property news

As the Spring property season unfolds, the UK housing market is once again proving its resilience, defying gloomy forecasts and continuing to move forward with momentum.

📈 House Prices Reach New Highs

Despite concerns following the 1st April Stamp Duty increase, buyers have remained committed. According to Rightmove, the number of sales falling through has held steady — a strong indication that the increased tax burden hasn't derailed the market.

In fact, asking prices hit a record high of £377,182 in April, marking a 1.4% monthly rise and 1.3% year-on-year growth. This comes amid a significant uptick in supply, with more properties coming to market than at any point in the last decade.

Rather than cooling demand, this greater choice is fuelling buyer interest, with agreed sales up 6% on the same time last year.

“We’ve seen our first price record in nearly a year, despite the number of homes for sale being at a decade-high,” says Colleen Babcock of Rightmove. “The increased choice seems to be bringing more movers into the market.”

🏦 Mortgage Rates Easing, Lending More Accessible

The market is also benefiting from falling mortgage costs and a more optimistic base rate outlook. The Bank of England’s recent rate cut to 4.25%, coupled with expectations of further reductions through 2025, has prompted lenders to drop mortgage rates and relax criteria.

This has boosted affordability across the board, giving buyers at all levels of the market greater purchasing power.

🏘️ Rental Market Sees Welcome Cooling

In contrast to the sales market, the rental sector is showing signs of cooling — a welcome shift for tenants after years of rapid increases.

Rightmove reports that the average asking rent outside London reached £1,349 per month in Q1 2025, with annual growth easing to 4.5% — the slowest first-quarter rise in five years.

The rebalancing is being driven by better supply-demand dynamics: 

• Available rental stock is up 11% year-on-year, according to Zoopla.
• Tenant demand has dropped 17%.
• Despite this, competition remains high, with around 12–13 renters per listing.

🏙️ Regional Trends

• Major urban centres are seeing slower rental growth.
• Commuter towns and affordable regions remain strong performers.
• London rents now average £2,698/month, with annual growth slowing to 2.5%.

Locally, Rolstons’ April lettings report shows average rents at £1,439, with annual growth at 4.0% — a moderation from recent highs. This trend is expected to continue throughout 2025, shaped by affordability ceilings and the anticipated Renters’ Rights Bill.

🔍 Key Takeaways:

• Buyer confidence is resilient, even post–Stamp Duty changes.
• Prices continue to rise amidst growing supply.
• Mortgage conditions are improving, supporting activity.
• Rent growth is slowing, providing relief but competition remains fierce.

As we head further into the year, all eyes will be on interest rates, supply levels, and policy developments, which will shape the next phase of the market.

If you'd like to talk to an agent for more personalised advice, our team is always available to help. We'd love to hear from you for a quick chat or a no-obligation property valuation.

Warm wishes
The team at Rolstons