Latest report from Nationwide shows big jump in March
House prices have experienced one of the biggest rises in years in March mainly driven buy the increase in stamp duty by an additional 3% for people buying 2nd properties. According to Nationwide house prices rose 5.7% when compared to the same month last year and the average property in the UK now costs £200,251 compared to £196,930 in February.
Nationwide’s chief economist, Robert Gardner, attributed the rise to buyers bringing forward purchases in order to avoid changes in stamp duty on second homes, which come into effect today.
The new higher rates of stamp duty, which also apply to buy-to-let homes, mean the bill on a £250,000 home leaps from £2,500 to £10,000.
“This temporary boost to demand against a backdrop of continued constrained supply is likely to have exerted upward pressure on prices and helped to lift the pace of annual price growth out of the fairly narrow range of 3pc-5pc that has been prevailing since the summer,” Mr Gardner said.
The Royal Institute of Chartered Surveyors also reported lack of supply is also driving up prices as the number of properties on Estate Agents books for sale is at a 30 year low.
House prices in London still outpace the rest of the country with prices 52% higher than the previous peak before the property crash in 2008 with the rest of the country at 9% above the previous peak.