And the drama continues…
Based on Halifax figures, house prices have fallen 2.4% Nationally shaving almost £4000 of the average value of a property in Britain. I believe that this is due to in no small part to the end of the Stamp duty holiday and the raft of measures brought in by the treasury to raise revenue and close loop holes. While there was a boost in sales leading up to the announcement in the budget and prolonged negative economic sentiment was not enough to raise property prices.
With unemployment high and earnings flat, it is expected that house prices will continue a steady downward decline through to the end of 2012 potentially contracting prices by a further 3%.
Central London as usual has swam against the tide showing an increase of 0.4% over the month. Beyond the turmoil in the EU and the influx of wealth from troubled economies, the Stamp Duty changes have forced some families and investors to sell up and move on concerned about their tax situation and lack of anonymity with the heavy tax implications of owning property in off shore vehicles. Looking to the next few months, even the London bubble will be strained once the true effects of the measures come through and the inevitable slowdown begins with the double dip recession and volatility of the European Markets taking hold.