The UK housing market has been on quite a tear for months now leading into the New Year, but the latest data suggests it could be quickly headed for a slowdown as buy to let activity hits the brakes. The stamp duty implemented April 1^st caused many to act on properties in order to avoid costly new fees associated with buy to let ownership. The date has now passed and with it a flurry of lending. Short supply, the new tax duty, and the upcoming referendum is sending waves of hesitation now through the market as warmer months are upon us.

According to a recent survey by the Royal Institution of Chartered Surveyors, the market is primed for a slowdown with a fall in buy to let lending leading the way. A barrage of activity within the sector during the last three months is now over with the April 1^st deadline of a new tax increase behind us. The majority of those participating in the survey did however express positive opinions regarding the increase of their own property during the next twelve months.

Simon Rubinsohn, chief economist at Rics, commented on the latest information from the survey, saying: “As expected, the buy-to-let rush has now run its course, and as a natural result, the market is starting to slow. But there are other significant factors that are currently weakening short-term confidence in the UK property market.

“Elections inevitably bring with them periods of uncertainty in the market, and our figures would suggest that next May’s devolved elections are no exception. Likewise, the EU referendum is likely to be an influencer in terms of the damper outlook for London in particular.”

Rubinsohn added: “However, all indications suggest that whatever the outcome of the forthcoming elections and referendum, in the long term, the imbalance between demand and supply will still exert a strong influence on the market, with house prices expected to rise by close to 25pc over the next five years.”