House price growth slows as stamp duty squeezes

/, News/House price growth slows as stamp duty squeezes

Growth slows: Average UK house prices were up 0.2% in April to £202,436, but the figure was a decrease from the previous month.

UK house price growth has reduced this month as a result of the introduction of new stamp duty taxes, figures from lender Nationwide show.

Despite average prices creeping up 0.2% in April to £202,436, the figure was down from 0.7% the previous month.

The yearly growth rate decreased to 4.9% from 5.7% in March 2016.

The dampening down follows a booming housebuyer market in March. The month boasted 165,400 transactions – an all-time high – and around 11% higher than the previous peak in January 2007.

Figures from the Council of Mortgage Lenders also suggest that mortgage lending rose to almost £26 billion in March, up 43% from the £18 billion lent in February.

A spokesperson for Nationwide said: “It could be that the surge in house buying activity resulting from the increase in stamp duty on second homes from 1 April, provided a short-term boost to prices in March.”

The new tax means there is now an additional 3% stamp-duty rate on property bought as a buy to let or second home.

If you are looking to purchase a property, speak to Frost Financial today and let one of our friendly advisers find the best mortgage deal for you.

2017-05-18T20:51:07+00:00 April 28th, 2016|Mortgage Advice, News|