haart’s ‘National Housing Market Monitor’ revealed that buyer demand fell off a cliff in May with new buyer registrations falling by 46% after the 3% stamp duty surcharge came into force on 1 April.
The UK is “nearing the limit” on house price growth and sellers need to set more realistic asking prices, haart estate agents chief executive Paul Smith warned today.
haart’s ‘National Housing Market Monitor’ revealed that buyer demand fell off a cliff in May with new buyer registrations falling by 46% after the 3% stamp duty surcharge came into force on 1 April.
UK house prices were up 1% on a monthly basis and 12% annually to reach £234,069 in April.
Smith said: “We believe the nation has now neared the limit in terms of price rises. Our data is already showing a slowdown in both house price growth and transaction levels.
“In order to maintain healthy sales levels sellers need to be much more realistic with their asking prices – properties are in danger of being over-valued and these homes will struggle to sell.
“They could also be at risk of lenders refusing to grant high LTV mortgage applications based on these too high valuations.”
Smith didn't think buy-to-let investors should be too worried despite falling demand.
He added: “We are continuing to see high levels of investment from Europe – there is still a huge appetite to invest despite the upcoming EU referendum.
“While there is a certain level of uncertainty in the property market which will further reduce demand in the short run, in the longer term, this will simply be a slight blip in an otherwise powerful property market.
“Regardless of the result, the UK and in particular London, will remain a global safe haven for property investment.”
