Due to the rush to mortgage by landlords up to 1 April in an attempt to bypass the stamp duty increase for second home buyers, the average house price saw another increase. According to data released by Halifax, the average house price now stands at £214,811. This is a 10.1% annual increase which is an 18 month high.

The house price increased up 2.6% from February for the month to month gain. The three months up to March had an increase of 2.9%.

Many housing market experts and economists are warning that a natural correction to the market could be coming.

Martin Ellis, the Halifax housing economist, remarked, “Worsening sentiment regarding the prospects for the UK economy and uncertainty ahead of the European referendum in June could result in some softening in the housing market over the next couple of months.

“Current market conditions remain very tight with an acute supply/demand imbalance continuing despite an improvement in the number of properties coming on to the market for sale in recent months. This, together with continuing low interest rates and a healthy labour market, indicate that house price growth is set to remain robust.”

There have been reports that while landlords are stepping back from the housing market, first time buyers are taking their place. This is due to the continued low interest rates being offered by lenders, as well as government schemes assisting first time buyers onto the property market.

Low interest rates are also continuing to be connected to remortgages, so those homeowners that are soon to see their current mortgage deal end or those already moved to their lender’s standard variable rate (SVR) can find attractive cheap deals as well.