UK Average House Market Declined Last Month but Boost Could be Ahead

UK Average House Market Declined Last Month but Boost Could be Ahead

The UK house price declined a bit in March. It was expected that there might be a slowdown in the market in March due to the stamp duty holiday deadline looming on 31 March. Most had already rushed to buy to beat the deadline. A slowdown was forecasted. It occurred, and the average house price declined, but not by much. The average house price fell by 0.2% in March.

In February the average UK house price had increased by 0.7%. Keep in mind this is during a global pandemic impacting consumers.

Year on year, the house price average is 5.7% higher than March 2020.

The data released in the Nationwide House Price Index suggested that experts were on point that most would be rushing to complete their property purchase before the stamp duty holiday deadline. The expectation now is that another boost is coming. Not only was the deadline extended until the end of June, but the spring season is normally a time that brings sellers and buyers to the housing market.

The housing market has remained resilient during the pandemic and now with the stamp duty deadline extended and new stimulus measures offered there is a forecast of stronger demand from hopeful home buyers.

Robert Gardner, Nationwide’s chief economist, remarked, “Recent signs of economic resilience and the stimulus measures announced in the Budget, including the extension of the furlough scheme and the stamp duty holiday, as well as the introduction of a mortgage guarantee scheme, suggest that housing market activity is likely to remain buoyant over the next six months.”

The average house price could get see an increase simply from the strong demand from home buyers. Fewer properties are coming onto the market and that could push sellers to expect higher sales and home buyers willing to pay to get their dream home. With so many factors at play that combined could keep house prices growing and the housing market busy, April could fulfill expectations and possibly exceed them.

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