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Lenders Report UK House Price Growth is Steadying Following Stamp Duty Surge

The latest UK house price indices from leading mortgage providers has shown that residential property value increases are steadying following a rush to beat the new Stamp Duty levy.

Property Prices Steadying in 2016

The latest UK house price indices from leading mortgage providers has shown that residential property value increases are steadying following a rush to beat the new Stamp Duty levy.

The April House Price Index reports published by the Halifax and by Nationwide Building Society, indicate that the market is slowing, following the surge of buy-to-let investors purchasing ahead of the new Stamp Duty Land Tax surcharge.


Based on their own house price indices, Nationwide and Halifax reported that the average property price in the UK now stands at £212,321 and £202,436 respectively – a 0.8% decrease and a 0.2% increase month-on-month for each lender.


Assessing the growth of the market year-on-year, Halifax found that the annual rate of growth eased from 10.1% to 9.2% in April, whilst Nationwide reported a 4.9% increase from last year, down from the 5.7% reported in March.


Commenting on the figures, Nationwide’s chief economist, Robert Gardner said: ‘This slowdown returns the annual pace of house price growth to the fairly narrow range between 3% and 5% that had been prevailing since the summer of 2015.’


Halifax housing economist, Martin Ellis, said: ‘Current market conditions remain very tight as the severe imbalance between supply and demand persists. This situation, combined with low interest rates and rising employment and real earnings, should continue to push house prices up over the coming months.’


The supply shortage affecting house prices in the UK was highlighted earlier this month, as the National House Building Council reported that construction of new homes fell in Q1 2016 across the UK, with only the North West seeing an increase in house building activity.

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