In January of this year, house prices fell for the first time in six months.
The average property price in the UK fell by 0.3% to £229,748, according to the Nationwide House Price Index.
This is the first time house prices have fallen since June, and this may be due to the end of the stamp duty holiday.
The housing market has boomed over the past year, with UK mortgage approvals reaching their highest level since 2007. New data from the Bank of England shows the number of mortgage applications soared in the second half of this year following the introduction of the stamp duty holiday.
Commenting on the housing market, Nationwide Chief Economist Robert Gardner said: “The economic slowdown probably reflects tapering demand ahead of the stamp duty holiday, with many people considering moving to bring forward their purchases.”
“Although the stamp duty holiday is not due to end until the end of March, given that buying processes typically take several months, we would expect activity to subside well before then (our house price index Please note that this is based on mortgage data (approval stage).
“Looking forward, changing housing preferences are likely to continue to support the market to some extent,” he added. “However, if the stamp duty holiday ends as planned and labor market conditions continue to weaken as expected by most analysts, the housing market will weaken.” Activity could likely slow sharply in the coming months is high. ”
The stamp duty holiday is due to end at the end of March.
