In the first quarter of the year the housing market had a boost. A very big boost. A tax surplus was to go into effect on 1 April for second home purchases. Home buyers and landlords seeking to avoid the extra tax did their best to finish before the deadline and that pushed home sales upward.

What comes up must come down, or so it does eventually when an unusual pressure pushes the housing market upward. The problem with the downfall from the most recent boost is there are other factors at play that are impacting the market. One being the EU referendum looming over potential buyers that is expected to put a brake of caution into the market.

The weakening global economic market is also having an impact on the market as the number of foreign investors that were coming into the housing market is declining.

Experts believe that the housing market will show signs of the pressures impacting it through the summer, but it could rebound afterwards depending on the EU vote, demand from buyers, strengthening in the global economy, or the creativity of lenders offering new exciting deals.

Meanwhile, the housing market’s safety net are the continued low interest rates being offered by lenders. This will aid first time buyers, home movers, and those landlords not afraid of the new tax surcharge entry into the market.

Homeowners, too, should show up for the low interest deals as remortgages are very attractive and have the potential to save them money.

The Office for National Statistics (ONS) reported that the UK house price index increased 2.5% in March from the previous month which pushed the average house price to £291,820.