House price stabilisation is good news for first time buyers

July 18, 2016 by Brendan

Borrowers

Buyers trying to get their foot onto the property ladder may soon be able to celebrate, as property prices appear to be slowing down slightly.

A combination of factors has resulted in the price of houses slowing down. The introduction of stamp duty tax changes and the EU referendum were the main influences on the housing market during recent months. According to the Halifax, property prices increased by 1.2% during the last quarter, from April to June, to reach £216,823. Although property prices are still rising, April to June is the start of the busiest home buying season, and experts expected to see a much steeper rise.

Halifax housing economist, Martin Ellis, states that it is too early to determine whether the EU referendum has had a significant effect on property values, as the statistics were taken prior to the outcome of the vote. However, Ellis did state that property prices were still rising, although slowly.

Although experts are still waiting to calculate any impact of the referendum on house prices, increases in property values are slowing down as people in the UK are temporarily pausing house-buying activities in case there is an economic downturn. Stamp duty changes have already had an impact, according to the Halifax. According to a spokesperson for the bank, there was a spike in numbers completing sales in March, followed by a slump in April, as the changes were introduced.

Mortgage advisers have to study CeMAP courses so they have the necessary information about the buying process, stamp duty tax and other factors which could have an impact on house buying.