The annual growth of the house price delayed to 3.4% in April, from 3.9% in March according to the last national house price index. The data also reveals house prices by 0.6% month on a month.
In commentary on the figures, national chief economist Robert Gardner said that mitigating in the growth of the house price was to be expected, given the changes in stamp rights at the beginning of the month.
“Early indications suggest that there was a significant jump in transactions in March, where buyers brought up their purchases to prevent additional tax obligations.
“The market will probably remain a bit soft in the coming months, according to the pattern that will usually be observed after the end of the holidays of the stamp rights. Nevertheless, the activity will probably become steady as the summer progresses, despite broader economic uncertainties in the global economy, because underlying conditions remain supportive for potential buyers in the VK.”
He added: unemployment remains low, the income increases at a healthy pace in real terms (that is, after the accounting for inflation), household balance sheets are strong and the loan costs are likely to moderate a bit if bank speed is further reduced in the coming quarters as we and most other analysts expect. SWAP rates (which form the basis of the mortgage prices fixed rate) have indeed been moderated in recent weeks. “
Garrington Property Finders Chief Executive Jonathan Hopper pointed out that in some parts of the UK the supply of houses for sale was now much surpassed the demand.
“This applies especially in more expensive and often highly desirable areas where the drop of delivery has changed in a flood.
“In these areas, buyers are blessed with both abundant choice and considerable negotiation forces – and this keeps the prices flat or even pushing.”
Fine & Country Managing Director Jonathan Handford insisted that the cooling was not a surprise, given that many buyers brought up their purchases to defeat the threshold change of March, leaving a quieter pipeline in the immediate aftermath.
He said that the prospects were not only formed by domestic inflation data, but also by global headwind – including the possible disturbance caused by changes in global trade. However, this can also encourage British policy makers to act faster to support growth and to lower the loans.
“Yet challenges remain. In many high precious areas, house prices remain out of reach for a significant share of prospective buyers. Strenter Lending Rules and large deposit requirements remain much outside the market, despite signs that broader financial circumstances can improve.”
He added: “The delay of April reflects a natural rededuction after a period of deadline-driven demand. But with the softening of inflation and the cutbacks increasingly, the market can get back later this year, on condition that affordability barriers are tackled.”
On the market, President Jason Tebb said that although a number of buyers put forward transactions to take advantage of the concession of the stamp rights, there was still a lot of activity on the market, now this stimulus was no longer available.
“Other incentives-as interest rates are even more essential. Two quarter-point basic speeds in the second half of last year, followed by one so far this year, have noticeably stimulated sentiment and transactions. All eyes have the Bank of England to see if the following week will follow the market to see if it will be to see the following week to see if the following week will be to see if the following week will be to see if the following week will be to see if the following week will be to see if the following week will be to see if the following week will be to see if the following week will be to see if it will be to see if the following week will be to see if it will be to see if the following week will be to see if the following week will be to see if it will be to see if the following week will be to see if it will be to see if it will be to see if the following week will see if the market will be to see if the following week will be to see if it will be to see if it will be to see if the following week will see if it will be to see if it will be to see if it will be to see if it will be to see if it will be to see if it will be to see” “” “” “” “” “”