Welsh county sees steepest house price decline in UK 2025 so far

The latest figures from the UK housing market reveal significant regional shifts in early 2025, with one Welsh county seeing the steepest decline across the whole of the UK.

While some areas are seeing sharp drops in average property prices, others are continuing to climb, painting a varied picture across the UK’s nations.

Conveyancing specialists at Bird & Co analysed data on house price changes from December 2024 to April 2025 to spotlight the areas with the biggest house price changes so far this year. The research aims to help buyers identify more affordable opportunities and to support sellers in understanding where prices remain strong.

According to the findings, Ceredigion had the first largest percentage decrease in average house prices across the UK over the period, falling by -6.96%.

Declines

The 15 locations that saw the biggest decrease in house prices were:

The sharpest declines this quarter were often found in rural and coastal parts of the UK, where prices may be rebalancing after a surge in demand during the post-pandemic period.

Meanwhile, some high-value areas also saw a downturn, reflecting ongoing caution in parts of the prime London market. Commuter-friendly locations similarly experienced downward pressure, potentially linked to continued affordability concerns.

In Scotland, several regions recorded steady declines, suggesting that market cooling is widespread, rather than localised.

Falling house prices can reduce homeowner equity and make it more difficult to sell without a loss. However, for first-time buyers or those looking to move to a larger home, these market shifts could offer a more affordable way to step up or get onto the property ladder.

By comparison, some of the steepest price increases were seen in high-end boroughs, such as Kensington and Chelsea and Westminster.

Housing market ‘recalibrating’

Daniel Chard, Partner at Bird & Co, said: “After several interest rate cuts since mid-2024, the market is starting to respond. However, borrowing still remains far more expensive than what many buyers have been used to over the past decade. Mortgage rates, although easing, are still averaging above 5%, which has made it harder for many people to take that next step on the ladder.”

He added: “Combined with a sluggish economy, this has cooled demand in some areas, putting downward pressure on prices. Elsewhere, values are still rising, but the pace has clearly slowed. What we’re seeing is a housing market that’s recalibrating after years of volatility, with different regions adjusting at different speeds.”

“House price movements, whether rising or falling, have a direct impact on affordability, borrowing, and overall buyer confidence. For those looking to get on the property ladder, falling prices can improve accessibility, while increases may make it harder to find a suitable first home.

“Rapid changes in the market can influence mortgage lending, development activity, and long-term planning for both buyers and sellers. Staying on top of these trends is essential for making informed decisions in today’s housing landscape.”