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UK house price growth slows in April, says Nationwide | UK house price growth slows in April, says Nationwide |
(about 1 hour later) | |
UK house price growth slowed in April, following the surge of buying in March, according to the Nationwide Building Society. | UK house price growth slowed in April, following the surge of buying in March, according to the Nationwide Building Society. |
The annual pace of house price growth slowed to 4.9% in April, compared with 5.7% in the previous month. | The annual pace of house price growth slowed to 4.9% in April, compared with 5.7% in the previous month. |
In April alone, house prices rose by just 0.2%, the lowest monthly increase since last November. | In April alone, house prices rose by just 0.2%, the lowest monthly increase since last November. |
Meanwhile a survey of surveyors has suggested that demand for commercial property has slumped to a record low. | |
The study - for the Royal Institution of Chartered Surveyors (Rics) - concluded that international investors have been put off by the possibility of the UK's exit from the European Union. | |
'Temporary boost' | |
Nationwide said April's slowdown in house price rises came after the number of property sales in March hit a record high, when landlords rushed to beat an increase in stamp duty. | |
There were 165,400 transactions during the month, according to HM Revenue and Customs (HMRC), higher than the previous peak of 149,000 in January 2007. | There were 165,400 transactions during the month, according to HM Revenue and Customs (HMRC), higher than the previous peak of 149,000 in January 2007. |
"It may be that the surge in house purchase activity resulting from the increase in stamp duty on second homes from 1 April provided a temporary boost to prices in March," said Robert Gardner, Nationwide's chief economist. | "It may be that the surge in house purchase activity resulting from the increase in stamp duty on second homes from 1 April provided a temporary boost to prices in March," said Robert Gardner, Nationwide's chief economist. |
Nationwide's figures show that the price of the average house or flat in the UK increased to a new record high of £202,436. | Nationwide's figures show that the price of the average house or flat in the UK increased to a new record high of £202,436. |
"House purchase activity is likely to fall in the months ahead given the number of purchasers that brought forward transactions," said Mr Gardner. | "House purchase activity is likely to fall in the months ahead given the number of purchasers that brought forward transactions," said Mr Gardner. |
"The recovery thereafter may also be fairly gradual, especially in the BTL [Buy-To-Let] sector, where a wealth of other policy changes, such as the reduction in tax relief for landlords from 2017 are likely to exert an ongoing drag." | "The recovery thereafter may also be fairly gradual, especially in the BTL [Buy-To-Let] sector, where a wealth of other policy changes, such as the reduction in tax relief for landlords from 2017 are likely to exert an ongoing drag." |
Commercial property | |
The Rics survey indicated that demand from foreign investors for UK commercial property is now at its lowest level since it started keeping records three years ago. | |
Uncertainty about the EU referendum was cited by 38% of Rics members as the reason for that lack of interest. | |
"There is no doubt that since the EU referendum became a certainty following the general election last May, we have seen a decline in interest from overseas investors in UK commercial property," said Rics chief economist Simon Rubinsohn. | |
"At least in the short-term, we know that international retailers and service providers are finding the UK market less attractive." | |
Of the surveyors questioned, 43% said that a UK exit from the EU would have a negative impact on the commercial property sector, while 6% said it would be beneficial. |