If you’re keen to invest in property this year, make an appointment with a mortgage broker in York now as there’s no better time than the present for potential homeowners to take that next step on the property ladder.
Figures from Nationwide show that the average property price in the UK is now £204,368 – with price growth falling to 4.7 per cent in May, a drop from the 4.9 per cent seen in April. This is in large part because of the introduction of changes to stamp duty tax, as well as the upcoming referendum over Brexit.
The stamp duty changes saw people rushing to buy property in March, which then slowed down in April. Now, if you have more than one property a three per cent stamp duty is imposed if you’re looking to buy another house.
The uncertainty over Brexit, meanwhile, is deterring many investors at the moment, which means less demand for homes and a drop in prices.
“House purchase activity is likely to fall in the months ahead given the number of purchasers that brought forward transactions. The recovery thereafter may also be fairly gradual, especially in the [buy-to-let] sector, where other policy changes, such as the reduction in tax relief for landlords from 2017, are likely to exert an ongoing drag,” chief economist with Nationwide Robert Gardner said.
Prospective homeowners should always keep an eye on the property market so they can strike while the iron is hot and take advantage of dips in house prices. The next few months could well be the time to buy if prices continue to fall.