The prices of Britain’s house saw their biggest monthly decline in June for more than two years.
Prices have declined by 0.8% last month since February 2023, which the Building Society stated that the weak demand reflects a weak demand after a change in stamp duty in April.
During the year, prices were 2.1%, although it was the slowest annual growth rate for about a year.
However, the nationwide said that it expects the activity of taking the housing market in the coming months.
Robert Gardner, Chief Economist, Nationwide, said the situation remained “assistant” for many potential homebuilders.
He said that unemployment rate is low, earnings are still beating inflation and borrowing costs may be cheap if the bank of England further cuts interest rates.
Changes in stamp duty to be implemented in April means that Housebugars in England and Northern Ireland now pay taxes at assets of more than £ 125,000 instead of more than £ 250,000, as earlier.
For the first time, buyers also have to pay stamp duty on houses costing more than £ 300,000, while before the April change, there was no fee until the property was above £ 425,000.
Matt Swanel, Chief Economic Advisor at the EY Item Club, said the price of the monthly house could “be quite unstable and it has become exaggerated by the changes in the April Stamp duty threshold”.
This change distorted the market in the first half of the year, said, as was done through deals in the late March.
,[Since April] The housing market has been in a soft patch, but we think it will prove to be temporary, with an increase in the hostage approval of May for the purchase of a new house, which leads the housing transactions, already indicate that it has begun to fade. ,
The price data of the nationwide house is based on its own mortgage loan, which does not include buyers who buy houses with cash, or purchases. Cash buyers are responsible for approximately one third of the sale of housing.
