By Anthony O. Goriainoff

U.K. homes could become more affordable to buyers as U.S. President Trump's tariff announcements might prompt the Bank of England to cut lending rates, property website Rightmove said.

Rightmove said that the U.K. property market's resilience will be further tested by the effects of the tariffs on the country's economy over the coming weeks and months.

The instability caused by the U.S. tariffs makes a May rate cut look increasingly likely, according to Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales. The bank's policymakers could be forced into cutting interest rates more quickly in an attempt to lift some of the smog clouding activity in the U.K.

The average cost of property coming to the U.K. market rose in April to a record high, with mover activity resilient and new-buyer demand increasing, according to data from Rightmove.

The survey showed that monthly average prices rose 1.4% to 377,182 pounds ($489,205), representing a larger-than-usual April price increase despite the number of homes for sale at this time of year reaching decade-high levels.

According to the survey's data, England's Midlands and northern regions, as well as Wales and Scotland, showed price records in April, with the southeast and southwest lagging behind. Although London also hit a record high, this might be short-lived given its higher exposure to global uncertainties.

The latest market activity snapshot suggested that the stamp duty increase in England on April 1 didn't deter most movers going through the sales-completion process, Rightmove said. Stamp duty is a buyers' tax. New buyers and sellers still feel confident to enter the market, it added.

The site's research showed homes that were priced realistically from the start of marketing, instead of being reduced later, were more likely to find a buyer and in less than half the time, on average.

Although the seasonal increase in asking prices points positively to the market's health, new sellers should be cautious of the high competition for buyers they might face when setting their asking price, it said.

Moreover, if the BOE were to issue further and faster rate cuts from May, mortgage rates could decrease faster than anticipated, Rightmove said.

"Average mortgage rates remain high, and the current average five-year fixed mortgage rate of 4.72% is only slightly lower than the average of this time last year, which was 4.84%," it said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

April 14, 2025 00:30 ET (04:30 GMT)

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