UK house prices remained flat month-on-month in March ahead of the April stamp duty changes, Nationwide has revealed.

The building society said in its latest house price index (HPI) that the average house price in the UK stood at £271,316 in March, a year-on-year increase of 3.9%.

This matches the annual increase recorded in February.

Chief economist at Nationwide, Robert Gardner, said: "These price trends are unsurprising, given the end of the stamp duty holiday at the end of March. Transactions associated with mortgage approvals made in March, especially toward the end of the month, would be unlikely to complete before the deadline.

"The market is likely to remain a little soft in the coming months since activity will have been brought forward to avoid the additional tax obligations – a pattern typically observed in the wake of the end of stamp duty holidays.

"Nevertheless, activity is likely to pick up steadily as the summer progresses, despite wider economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive."

In its HPI, Nationwide revealed that Northern Ireland was the best performing region in the UK in terms of house price growth, with prices increasing by 13.5% to £205,796 year-on-year.

In the three months to the end of March, house prices in Scotland (£186,131) and Wales (£209,839) jumped annually by 3.9% and 3.6%, respectively.

In England, the North West was the best performer, with prices increasing by 5.9% to £221,896, and prices in London jumping by 1.9% year-on-year to £529,369, the highest regional price in the UK.

Personal finance analyst at Bestinvest by Evelyn Partners, Alice Haine, added that with rising transaction costs and uncertainty around the country’s economy, budgets are set to be "stretched to the max", leading to homebuyers having to "weigh up the cost of home ownership very carefully from today".

She concluded: "Mortgage rates may be easing, a result of three interest rate cuts since August last year, but the outlook is uncertain. The Bank of England kept interest rates on hold in March to keep inflationary pressures at bay, not only from Chancellor Rachel Reeves’ tax hikes but also US President Donald Trump’s tariff war, which is raising anxiety levels across the globe.

"While some movers may choose to park buying plans for now while they reassess their affordability position, first-time buyers wanting to escape high rents and keen to plough ahead have options. Some mortgage providers are relaxing their lending criteria, while no-deposit mortgages are back on the table along with longer-term home loans, such as 30, 35 or even 40 years.

"Now is the time to negotiate more heavily. Listings are on the rise, and with the spring selling season now upon us, a time when more homeowners typically place properties on the market, it may be a buyers’ market once again."

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