UK house prices fall as new tax bites
According to the latest Halifax report, UK house prices fell in April as buy-to-let purchasers disappeared amid rises in stamp duty on second homes.
Average values dropped 0.8% from March, which reduced the annual gain to 7.8% from 11%, taking the average house price to £212,321, down £1,624 on the month. On a more positive note, the last quarter rose 1.5% in comparison to the previous 3 months.
A rush to beat the new stamp duty tax rates for buy to let and second homes during February and March was behind highly volatile pricing and big rise in the number of transaction in those months.
House sales jumped to 165,480 in March from 116,930 the month before – the highest monthly total since records began in April 2005.
Martin Ellis, housing economist at Halifax said the shortage of property and high demand – coupled with low interest rates, rising employment and wages – should continue to push house prices up over the coming months, but warned “Weakening sentiment regarding house price prospects and a dip in customer confidence however suggest that annual house prices growth may ease.”
Written by: The Team | On: May 11, 2016