For every up there is a down – and for every start there is a stall, especially where property is concerned. It’s been revealed that the house price growth has lost so much pace that it’s stalled almost entirely. It now stands at its lowest level for 19 months.
Industry experts who have studied the property data have noted that there have been huge fluctuations across the UK as a whole. So while there’s been strong growth in locations such as Scotland, Northern Ireland and the North-West of England, London has actually been experiencing a fall in prices.
Just last week some in the industry were speculating that the capital’s house prices will fall by around 3.3%. Prices elsewhere in the country, according to the Centre for Economics and Business Research, will dip by 0.6%.
The capital had previously seen a sharp rise in prices, but as of December those prices started tailing off, leading to the fall we’re seeing now. Part of the issue has been the latest stamp duty rules. Treasury officials say that anyone purchasing a home that costs below £937,000 will pay the same or lower than before the changes come in, which is grand for around 98% of new homeowners. But because property values are far higher in London, that also means that buyers will also end up paying more in stamp duty there than elsewhere in the country.
And this, property professionals suspect, may be proving off-putting to new buyers in London. Despite this, many believe that those reforms to stamp duty will, in fact, eventually deliver a boost to both house sales and prices, as both buyers and sellers look to capitalise on the lower costs for stamp duty.
The property market can often seem like a minefield, particularly with such reforms taking place. That’s why Search Mortgage Solutions is here to help. If you’re in need of a mortgage broker in Manchester and beyond, we’ve got you covered. Please don’t hesitate to contact us on 0800 756 7794 or email firstname.lastname@example.org and our team of experts will be delighted to assist with your enquiries.