Housing market slowdown expected from April.

March 4, 2016

In just under 4 weeks time, starting the 1st April the new stamp duty rate for buy-to-let investors and second home buyers comes into force, many are trying to beat the deadline so as to make the saving of the extra 3% they would be paying after the cut off date.

Agents and conveyancers alike will be under pressure to complete any outstanding purchases before the new tax rule comes into force, the normal time frame to complete is around 6 weeks, this can happen quicker on a cash purchase, with greater due diligence on mortgages the time frame can be considerably longer.

Due to the fact that a significant number of purchases have been brought forward to meet the stamp duty deadline, it will probably result in a lull in activity in the months following as these investement buyers are removed from the market,  there could be a vacuum as possible first and second-time buyers are unable to meet the higher prices.

After April 1st and the stampede of buy-to-let and second home buyers subsides, experts predict a slowing in house purchase  activity, prices are expected to dip as affordability takes control.

In their recent HPI report Martin Ellis, Halifax housing economist, reportedly said: “Increasing affordability issues, as house price increases continue to exceed wage growth, are likely to curb housing demand and cause price growth to ease.”

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Zoopla Rental Market Report: Rents rising at lowest level for 3.5 years

Upcoming reforms in the rental market will limit new investment and the number of homes for rent Rents rising at lowest level for 3.5 years as Zoopla warns upcoming rental reforms will continue to limit rental supply   Average UK rents for new lets are three per cent higher over the last year, down from…
Read More →
Estate Agent Talk

Commonhold White Paper – Thoughts from the Industry

The sale of new leasehold flats in England and Wales is to be banned under Labour’s plan to end the  ‘feudal’ system. Labour wants to switch to Scotland’s commonhold system There are around 5 million leaseholders in England and Wales. Under commonhold, each flat owner would own the freehold of their home, but also have…
Read More →
Breaking News

Greenpeace Ruling Exposes UK Government Policy

In January 2025, Greenpeace brought a collective action against the Dutch state for failing to comply with a 2018 European Court of Justice ruling on nutrient neutrality. An appeal is expected: however, as the UK Government has adopted the same ‘tax builders for pollution others cause’ approach to reducing nutrient pollution, it may find itself…
Read More →
Love or Hate Rightmove
Breaking News

Rightmove commentary on mortgage market + weekly tracker

Commenting on the mortgage market, Rightmove’s expert Matt Smith said: “The market has settled after the unexpectedly high inflation figure. Average mortgage rates on many products have trickled downwards, and we’ve even seen the return of some eye-grabbing sub-4% mortgage rates for those with the biggest deposits. It shows that mortgage lenders are still keen to…
Read More →
Breaking News

Government plans to ban new leasehold flats

With the Government’s plans to ban new leasehold flats, an expert says the system must be ready to cope. With the news that Government is to outline plans to ban new leasehold flats and adopt commonhold, with draft Leasehold and Commonhold Reform Bill to be published later this year, Scott Goldstein, Partner, Payne Hicks Beach,…
Read More →
bank of england interest rate
Breaking News

Bank of England Money and Credit Report – January 2025

Overview These monthly statistics on the amount of, and interest rates on, borrowing and deposits by households and businesses are used by the Bank’s policy committees to understand economic trends and developments in the UK banking system. Key points: Net borrowing of mortgage debt by individuals rose by £0.9 billion, to £4.2 billion in January.…
Read More →