Get in touch

Speak to us now on live chat

Speak to someone on the phone

We can call you

Send us an email

Go Back

Call us today:

020 8115 4286

If you wanted to speak to a local expert, please go here to contact a specific branch.

Please provide us with the below details and one of our local experts will be in contact.

Please provide us with the below details and one of our local experts will be in contact.

All done

Thank you for providing us with your contact details, one of our local experts will be in contact.

Get in touch
  • Speak to us now on live chat
  • Speak to someone on the phone
  • We can call you
  • Send us an email
Go Back

Please provide us with the below details and one of our local experts will be in contact.

Go Back

Please provide us with the below details and one of our local experts will be in contact.

Go Back

Call us today:

020 8115 4286

If you wanted to speak to a local expert, please go here to contact a specific branch.

Go Back

All done

Thank you for providing us with your contact details, one of our local experts will be in contact.

Contact Property prices dip in England and Wales after mad March buy to let rush

Fill in the form below to get in touch

Sales or Lettings enquiry

Your Details

We will use your data for the purpose of your enquiry. After we have responded, we would also like to send you emails with information on our other products and services, including our regular newsletter which contains special offers, property photos, hot topics and useful tips.
Please tick this box if you are happy to receive this and remember you can change your preferences at any time. If you would like to know more about how we use your data please visit our Privacy Notice here

All done

We received your message. Our expert local team will review your details and get back to you shortly.

If you need any more information call us on

Buy

Selling

Rent

Landlords

New Homes

Land & Investment

Area Guides

Offices

Contact Us

Award-winning customer service

Rated 4.9 out of 5 by our customers

Established in London since 1856

Local know-how, better results

Buy

Selling

Rent

Landlords

New Homes

Land & Investment

Area Guides

Offices

Contact Us

Main Menu

Award-winning customer service

Rated 4.9 out of 5 by our customers

Established in London since 1856

Local know-how, better results

Lander Sudios

Kensal Town, W10

From £495,000

Durnsford House

Wimbledon, SW19

From £500,000

Request Valuation

Property prices dip in England and Wales after mad March buy to let rush

Property prices in England and Wales fell by 0.5% in March, taking the average price of a house to 189,901, the latest land registry figures show. This takes annual house price growth to 6.7% but prices vary according to location with London and the East of England the only two regions with month on month growth. In London property prices increased by 0.2% month on month and by 13.9% year on year, taking the average price to 534,785.

In the East of England price were also up 0.2% month on month, taking annual growth to 10.7% and average value to 220,989. Everywhere else in England and Wales prices fell month on month with the steepest fall of 2.6% in Yorkshire and Humber, followed by a fall of 2% in the West Midlands. Prices fell by 1.2% in the North East, by 0.9% in Wales and the South West, by 0.4% in the South East, by 0.3% in the East Midlands and by 0.1% in the North West. Year on year prices were up everywhere apart from the North East where annual growth was down by 0.7% to 97,581. Prices were up 10.3% in the South East, by 5.8% in the South West, by 5.7% in the East Midlands, by 5.3% in the North West, by 3.5% in Wales, by 3.1% in the West Midlands, and 1.6% in Yorkshire and Humber.

Experts point out that the fall in prices should not be a surprise after a mad rush in March as buy to let landlords and second home buyers sought to beat the introduction of a 3% stamp duty surcharge on additional homes that came into force on 01 April. David Brown, chief executive officer of Marsh & Parsons, believes that there is still a lot of energy in the first time buyer market for other owner occupiers unaffected by the stamp duty chance. This should step up to fill any momentary fall back in investor demand, and keep prices on course. In London, there are 14 buyers competing for every available property on the market, which will keep the wheels of growth moving, he added. According to Andy Knee, chief executive of LMS, the monthly dip will cause hopeful home buyers to breathe a sigh of relief that house prices have not stretched further out of reach. But year on year, a 6.7% rise across England and Wales is cause for concern.

In London particularly, where house prices rose 13.9% annually to exceed an average value of 534,000, homeownership is fast become possible for only the very wealthy, he said. Despite government intervention to aid first time buyers, such as Help to Buy, Starter Homes and the Lifetime ISA, these schemes fall short of making property more affordable for millions, he pointed out and added that uncertainty over the referendum in June on the future of the UK in the European Union could have an effect. But he does not think that property prices will be affected drastically in the run up to the referendum vote on 23 June. Supply of housing remains critical and addressing that is the only way to keep pricing within reach for many. The housing market appears to be robust, but a healthy market is reliant upon first-time buyers and home movers being able to keep pace, something that cannot happen if house price rises continue, he said.

The stronger house prices growth seen at the beginning of the year is unlikely to return in the short term, according to Jonathan Hopper, managing director of the buying agents Garrington. But with demand still holding up, and a severe shortage of supply in many areas, we should expect to see more steady price rises during the summer months. March’s dip in prices is likely to presage a return to more normal rates of price growth rather than a serious slowdown in the market, he said. Even though its annual level of price growth remains close to 14%, London’s extraordinary run of price rises has slowed dramatically as international buyers hold off on purchases until the Brexit uncertainty is past.

Elsewhere, levels of buyer confidence remain solid, but with the surge in purchases by buy to let buyers now over, sellers now need to think more carefully about pricing competitively, he added. Low interest rates will continue to drive demand, according to John Eastgate, sales and marketing director of OneSavings Bank and he added that an ongoing shortage of new houses in the UK is holding back supply. Property values may see monthly fluctuations, but these underlying fundamentals are set in stone, and will continue to support prices in the long term, he said. The small dip is good news for first time buyers, said Rishi Passi, chief executive officer of Oblix Capital. Prices may well moderate further in the coming months as we witness the full effect of the new tax burdens on buy to let landlords. The possibility of a Brexit may also make some pause for thought, but in the longer term, infrastructure projects confirmed in the Budget such as Crossrail 2 and HS2 provide a strong foundation for the future of the property market, he pointed out.

The Pros and Cons of Property Management Read More
Dealing with a leak in the home Read More
Outsmart London’s house-hunting crowds Read More
Changes to landlord legislation in 2023 Read More
Spring into action with our community events this March Read More
Q4 Property Market Update from Marsh & Parsons Read More
How to switch your estate agent Read More
Marsh & Parsons win two marketing awards Read More
Marsh & Parsons raises £2,741 for Sleep-Out challenge Read More
5 stunning homes near Battersea Power Station Read More

Marsh & Parsons is registered in England (Company No. 05377981) Registered office address: 80 Hammersmith Road, London, W14 8UD (VAT No. GB 231 0965 32) | Copyright © Marsh & Parsons 2024

Client Money Protection is provided by RICS. The redress scheme for Marsh & Parsons is The Property Ombudsman Scheme. Calls may be recorded and/or monitored for training and/or data protection purposes. We are members of The Property Ombudsman (TPO), there to protect your interests. We abide by the TPO code of conduct.

We may refer you to recommended providers of ancillary services such as Financial Services and Insurance. We may receive a referral fee for recommending their services. You are not under any obligation to use the services of the recommended provider, which may also be an associated company of Marsh & Parsons.