House prices fall by 1.0% in March - Mortgages - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

House prices fall by 1.0% in March

House prices fall by 1.0% in March

Category: Mortgages

Updated: 29/03/2012
First Published: 29/03/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

House prices fell by 1.0% in March and are predicted to continue to drag over the next 12 months.

Figures from Nationwide show that at the end of the month, the average price of a home was £163,327 – a fall of 0.9% on the same point last year.

A slowdown in the property market had been expected because of the end of the stamp duty holiday on 24 March.

The temporary relaxation of the 1% tax on homes worth between £125,000 and £250,000 had given the market and house prices a boost in the early months of 2012 as buyers pushed forward in their efforts to buy.

The removal of the stamp duty holiday for first time buyers purchasing a property up to the value of £250,000 was confirmed in the Budget.

Around 180,000 first time buyers have benefited from the stamp duty holiday since its introduction in March 2010, although it is difficult to truly assess the true effect of the initiative as many of the deals would have been regardless of the stamp duty holiday.

The reintroduction of the tax is expected to raise around £600 million in revenues over the next 12 months.

"This dampening effect on housing market activity and prices may fade over the course of the summer, especially if the wider economic outlook begins to improve and other policy measures, such as the Government's NewBuy scheme are successful in supporting buyer demand," said Robert Gardner, chief economist for Nationwide.

"However, in our view the challenging economic backdrop is likely to continue to act as a drag, with house prices moving sideways or modestly lower over the next twelve months."

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.

Mortgage rates at fresh lows – but it may not last

Average fixed mortgage rates continued to fall this month, however much of this could be a technical adjustment rather than an indication of ongoing rate cuts – which means it may be worth switching to a new fixed rate deal sooner rather than later.
 
Close