The pace of house price rises will slow when tax changes "taking the heat out" of interest from investors, surveyors suggest.
The Royal Institution of Chartered Surveyors (Rics) predicted that the UK housing market will slow down over the next three months. This April, landlords and second home owners face a 3% stamp duty surcharge on new purchases. This would slow price rises, Rics said, but only in the short-term. Surveyors still expect house prices to rise by 25% over the next five years. 'Surge' "Over the past three months, we have witnessed a surge in buy-to-let activity," said Simon Rubinsohn, Rics chief economist. "Investors have rushed to purchase homes before the stamp duty surcharge comes into effect.
It is inevitable that over the coming months, April's stamp duty changes will take a little of the heat out of the investor market. "While there remain significant doubts as to whether the government's plans to encourage a more robust development and construction pipeline will be sufficient to address the housing crisis, long-term price indications for the housing market remain strong."