Higher House Prices Highlight March UK Housing Market
For those looking to possibly enter the UK housing market this month, the wait has just gotten an extension. According to Rightmove, the average price of a home across the country has just risen again to a massive £307,033. This is a rise of more than 1.2% or almost £4,000. Increase in property prices was expected to continue through the year, but some economists have been a bit surprised the rise in housing prices was so strong in March with the new tax on second properties beginning April 1st.
London has been traditionally the leader in house price increases over the last few years. Property prices in the capital city have been less sensitive and in fact March posted the smallest rise compared with the month prior to March than any other region. The rise in London during the month of March was only 0.3%.
Those looking to live in the capital city of London are up against it when the amount of income is realised. A salary of more than £105,000 is needed to purchase a home in the city limits by the year 2020.
The new April tax on second properties affected house prices, especially rental properties in England and Wales. Prices fell slightly making more property affordable to those looking for investments. The new tax which went into effect is an additional 3%.
Miles Shipside of Rightmove commented on the latest data to emerge regarding higher house prices, saying: "Interestingly there has been a stamp duty double-whammy effect pushing up prices in these higher sectors too."