Statistics body said fall related to original Stamp Duty holiday deadline having skewed the market

House prices in the United Kingdom (UK) fell 1.9% in April month-on-month, according to the Office for National Statistics (ONS)

The UK House Price Index shows prices in April were down in every part of the UK, with the exception of the East of England (which grew 0.3%,) Northern Ireland (1.1%) and Wales (0.6%).

However, the ONS said the month-on-month fall was likely due to the impact on buyer behaviour caused by the original stamp duty holiday deadline of 31 March before it was extended to 30 June.

An ONS spokesperson said: “As the tax breaks were originally due to conclude at the end of March 2021, it is likely that this inflated March’s average house prices as buyers rushed to ensure their house purchases were scheduled to complete ahead of this deadline”.

Annual growth however remains strong with prices rising 8.9% on average compared to April 2020 although it has slowed slightly from the 9.9% recorded in March.

The month-on-month fall appears to directly contradict the experience of mortgage lenders, with both the Halifax and Nationwide reporting strong price rises in April. The figures also come despite numerous commentators and bodies warning that the market is accelerating. 

The Royal Institution of Chartered Surveyors last week revealed in its Residential Market Survey for May that 83% of surveyors have seen price rises over the last three months - the highest figure since August 1988, almost 33 years ago. The Bank of England’s chief economist Andy Haldane last week described the housing market as “on fire”.

 

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