House price inflation has continued to remain broadly flat over the course of 2017.
The latest figure published by the Office for National Statistics showed house prices rose by 5.1 per cent in the year to November 2017.
This was down from 5.4 per cent for the previous month.
House price growth has been slowing since mid-2016, when it was at 8.2 per cent, but since the beginning of 2017 it has been fluctuating around 5 per cent.
The average UK house price was £226,000 in November 2017, up £11,000 from the same month in the previous year.
John Goodall, chief executive of buy-to-let specialist Landbay, predicted house price inflation would begin to pick up in 2018 as the stamp duty cut for first-time buyers takes effect.
In November chancellor Philip Hammond announced stamp duty would not be paid on first-time buyer purchases up to £300,000.
But analysis of this decision predicted the move would increase house prices because sellers would demand more money knowing first-time buyers do not have to pay stamp duty.
Mr Goodall said: "The government’s stamp duty cut for first-time buyers came too late in November to have directly pushed up house price growth, but by giving young tenants a small directional nudge onto the housing ladder, it is likely to have that very effect as we move through 2018.
"Of course the chancellor's cut to stamp duty for first-time buyers wasn't the only big ticket event in November.
"Earlier in the month the Bank of England increased the base rate, which made mortgages more expensive, and all at a time of high inflation and stagnant wage growth.
"Young first-time buyers might have been counting their blessings after the Budget, but affordability remains constrained across the rest of the market, and this is keeping a lid on house price growth.
"It is time the government offered a concrete housing strategy to build homes for both first-time buyers and those in the private rented sector. Hopefully the new minister for housing and Homes England agency, will be well placed to make good on the promise of both."
No comments:
Post a Comment