First-time buyers paid 2.8% more for their homes in March as they tried to make savings of 1% in Stamp Duty.
The Office for National Statistics said that first-time buyers were unique in paying higher prices this March than March of the previous year.
For owner occupiers moving homes, prices decreased by 1.6% over the same period.
The ONS index, one of the Government’s two official house price indices which sits alongside the very different Land Registry survey, said that overall, UK house prices in March this year were 0.4% lower than a year ago.
It said house prices had barely changed since the beginning of 2011, other than in Northern Ireland where there have been big price falls of 10.7%.
Also noticeable in the index is that the price of new homes has shot up by 6.9% in the 12 months to March, while London house prices have slipped by 0.6%. Although a small fall, it is the first move downwards for London property prices since October 2009.
The ONS puts the average house price in the UK during March at £225,283 – considerably above the Land Registry’s price of £160,372 for the same month.
Meanwhile, the NAEA said there were signs of ‘another slowdown’ in the housing market in April.
It said that listings increased per branch by just one, from an average of 61 in March to 62 in April, with an average of seven sales per branch during the month – the same as in March.
Wendy Evans-Scott, NAEA president, said: “Despite sales figures remaining stable, there is little sign of green shoots of growth in the levels of property supply and demand.
“Growth is being held back by continued restrictive lending policies from the major banks and lack of an adequate mechanism to support the first-time buyer market, a situation which will only get worse if mortgage rates rise as predicted.”
Comments
who is this and where do they get off get a life saddo
Litttle Jonnie stuffs himself again, quality thanks, very funny.
Got ya again
It Just shows what direction the market is still heading, and that the estate agents are being optimistic at best as always about the market to vendors and buyers still, getting ever more people into instant negertive equity,
Bless you little doggie - you are a cute little thing x
I'm not sure if its you amazing wit, your superior intelect, thought provocking views or the huge support you get from other posters that motivate you.......................or are you cross that you had a go at humping @Sibs leg and got shoooed off
Well done though - you are bigger and funnier and better than me
Clever Little Doggie
Pat, pat
Jonnie
Making yourself look more and more stupid little fella! Good to know its getting to your little ego with ever silly attempt to be clever. Many thanks , loving it and having a great laugh at you, as is everyone here! Keep em coming!! Leave for a while, can't take much more now!!
You've got yourself a consensus there Jonnie; less of the political fiddling around with SDLT please.
Hey! Look everyone its Little Doggie whohooo!! – AKA (today at least) ’You’ve Been Told’;
All waggy, little floppy tongue out, ugly as you like and a blank bit where his nuts once were and all bark – or yap really and nobody talking to him, poor little Doggie, keep yapping fella, or for a laugh add something to the debate, go on, anything at all – pick any article here and have a pop………………………………….you cant though can you boy? All you can do is run about cocking your leg up here and there yapping.
Give him a pat everyone.
@Sibs – your ‘moderate’ HPC mask slips from time to time mate but in the name of a debate, which is what a forum is for after all. How about if we agree that fiddling with stamp duty causes short term man made silly periods? – other EA’s may or may not agree but everyone I know is saying front end activity is good, lots of applicants, viewings, offer and sales agreed so no one seems gloomy.
The only thing that will properly bring prices down is a rush of supply and with a big dollop of repos in that rush, there are arguably signs there that the perfect storm is brewing (although its taking its time to get here – nearly 4 years) and that will mean increased transactions, lots of choice, people able to move up market, investors able to buy with sensible yields and so on, and if that happens HPC will be happy, EA’s will be happy and harmony will wash over us all.
Little Doggie might still be all on his own though
Jonnie
Addendum, go easy on Jonnie 'you've been told', I treat people as I find 'em. Suffice it to say he's always treated me civilly despite me being of the dark side, so I reciprocate accordingly.
Hi Jonnie,
I wouldn't say porn as such, perhaps schadenfreuden may be more appropriate. I'm just recognising it for what it is; a suckers' rally.
The same thing happened the last time the SDLT holiday was scrapped (for under £250k). Of course, Darling backtracked on that one and reintroduced it a few months later.
When considered the last decade and more has witnessed a vast transfer of wealth from young to old I take pleasure in seeing the stinking edifice coming apart at the seams.
"Sibs" the great Jonnie has spoken, that told you. Normal failed attempt at humour by him of course.
@ Jonnie
You're right - several thousand FTBs wandered blindly into over-priced purchases. Most price indices (with the exception of Rightmove) are mix-adjusted to take exactly the scenario you suggest into account.
In fairness to FTBs though, its just a matter of degree - their purchases were just more overpriced than average.
HPC
For the record please dont assoicate us to much with Wendy Evans-Scott. Most of us reckon she's a doughnut as well.
@Sibs
I appreciate that for some HPC’ers this is bordering on porn and as much as we are mates I can’t help but think you quite like it? – The two posts below yours have more than a whiff of excitement about them but, think of it this way;
The price of an FTB property ‘rose’, now was this an ‘own goal by intrepid FTB’s as you put it or was it just the fact that the stamp duty holiday only affected higher value FTB purchases? After all anyone buying below £125k is exempt anyway so the drive to get completions was only on the bigger stuff, and more big stuff I the mix cocks the indexes up……………………………………………..in fact going off on a tangent im told that this time of year is when lots of big gaffs come to the market, grounds / gardens etc look lovely and all that and the Buggershaw Smythes wait until the Magnolia is in bloom before getting the chap from Savills round (let Rightmove stick that in their pipe next month and smoke it, be interesting to see what happens)
……………………………anyway back to the point wadda think, am I onto something or did several thousand FTB’s wander blindly into over priced purchases, supported by the valuer, their dad, the bloke down the pub and every other source of advice an FTB has?
Jonnie
“Growth is being held back by continued restrictive lending policies from the major banks and lack of an adequate mechanism to support the first-time buyer market, a situation which will only get worse if mortgage rates rise as predicted.”
Aaaaw.Such a shame.......(suppresses laughing out loud)
Wendy Evans-Scott, NAEA president, said: “Despite sales figures remaining stable, there is little sign of green shoots of growth in the levels of property supply and demand.
“Growth is being held back by continued restrictive lending policies from the major banks and lack of an adequate mechanism to support the first-time buyer market, a situation which will only get worse if mortgage rates rise as predicted.”
No we don't more money borrowed and WASTED on over-priced non-producing assets. This is just destroying our economy. Money should be borrowed to stimulate growth in business,manufacturing,employment and infrastructure.Grow a brain Wendy.
That is a spectacular own goal there by our intrepid FTBs; I imagine they must have been congratulating themselves on their financial savvy for saving 1% off the purchase price.
“Growth is being held back by continued restrictive lending policies from the major banks and lack of an adequate mechanism to support the first-time buyer market, a situation which will only get worse if mortgage rates rise as predicted.”
Nope Wendy, growth is being held back by speculative land prices that have yet to adjust with reality. The past three years have simply been an extended Wil E. Coyote moment of gravity defiance.
Now this has given me an idea for our estate agent friends:
why not increase the asking price of all properties by 3% compared to last month.....and then advise your clients to give a 1% discount off the asking price to make the buyer feel like he's done well?
Oh. of course, you do that already. Silly me!
It would be tragic......if it wasn't so funny!
"Growth is being held back by continued restrictive lending policies from the major banks and lack of an adequate mechanism to support the first-time buyer market, a situation which will only get worse if mortgage rates rise as predicted"
Yes that is the situation and will remain so for the long term future ie decades. Lower house prices might get the market going again. Just a thought ; )