Property sees post-stamp duty slow down

In the year to April property price growth stood at 4.9%, down from 5.7% annually to March. Monthly house price growth fell from 0.7% in March to 0.2% in April

Property sees post-stamp duty slow down

House price growth slowed in April after the 3% stamp duty surcharge came into force, Nationwide’s house price index has found.

In the year to April growth stood at 4.9%, down from 5.7% annually to March. Monthly growth fell from 0.7% in March to 0.2% in April.

Jeremy Leaf, former RICS chairman and north London estate agent, said: “The party seems to have ended earlier than expected and due to the historic nature of such data, this doesn’t bode particularly well for the next few months for the property market, especially when you take into account uncertainty caused by other factors.

“As far as the housing market is concerned, that Brexit vote can’t come soon enough.”

But eMoov founder and property expert Russell Quirk reckons property prices will continue to rise at a steady pace this year: “It remains to be seen if there is now a lull in demand across the market consequential to this 3% levy being applied. However with interest rates at a relentless low and mortgage products now at record-breaking attractiveness to all, including first-time buyers, I don’t believe the market will slow as much as forecast over the coming months,” he said.

“This continual growth since last April wasn’t brought on by the changes to stamp duty and, although we may see a slight dip in activity over the coming month, prices are likely to carry on increasing for the foreseeable future.

“So my bet is firmly placed that 2016 will see a very positive rise in values overall, notwithstanding the regional differences that indexes such as these always mask.”

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