House prices across the country have seen an increase of 2.5% over the last month, new research by an estate agent revealed.
Whilst house prices have seen a stable rise, they also are 0.6% below their value from 12 month ago, the study by estate agent Haart showed.
Property across the capital saw an increase of 1.6% month-on-month, which also indicates a 1.1% yearly increase.
These news come at a time where talks of a crash in the country’s property market are becoming louder. And they are pointing the opposite way.
When it comes to the amount of available properties, levels increased by 14% in London and by 11% across the rest of the country. The report highlighted that this increase in availability has been a noticeable trend over the last couple of months, ever since the general election.
Paul Smith, CEo at Haart, commented on the findings:
“One of the key reasons that transactions are so far behind where they were last year is the government’s changes to the buy-to-let market, including the stamp duty surcharge, which has dampened the market significantly. This is particularly the case in London, which has seen buy-to-let landlords flee the market.”
As we are slowly moving further away from April 2016 – the month when the stamp duty changes kicked in and out an end to a buying frenzy from investors – figures should also return to normality again.
According to Paul Smith “the fundamental issue in the market remains affordability, as pulling together the money for both a deposit and stamp [duty] continues to be a growing problem for aspiring home owners, and home movers.”
First-time buyer numbers have dropped by 46.3% over the last year, pushing more and more young hopefuls into rental property.