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Housing market to drop back in the spring and summer?

Housing market to drop back in the spring and summer?

Could this be the end to the busy start of the year in the housing market? With the rush to beat the stamp duty surcharge deadline of April 1, this could mean that business will fall back in the spring and summer.


The latest house price index, shows that the number of mortgages agreed for house purchases rose in January to approximately 75,000, up from around 71,000 approvals in December and the record monthly number since early 2014.


The number of second home purchases for buy to let has had a big effect on these figures, due to the stamp duty deadline of April 1st. So this in turn will possibly result in the housing market drop that is predicted in the spring.


The index details that the UK house price increase stayed steady in February, with prices increasing by 0.3% during the month, unaffected from January’s figures. The average house price in the UK is now £196,930.


Since last summer, the house price growth has continued between 3.0% and 5.0%. However despite the predicted reduction in the housing market, improving employment forecasts and the on-going low interest rates, should help keep the market comparatively strong.

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