There are growing signs that the residential property market is starting to slow as market activity starts to lose momentum ahead of April’s stamp duty deadline.
According to the latest Royal Institution of Chartered Surveyors (RICS) survey, buyer demand weakened last month, altgough hoyse prices did edge higher.
The latest RICS survey reveals a net balance reading of -14% for buyer demand in February, down from -1% in January. It marks the weakest reading since November 2023.
RICS acknowledged that the upcoming changes to the stamp duty thresholds are impacting decision-making, which is contributing to the slowdown.
From 1 April, stamp duty will be due on homes costing more than £125,000 (£300,000 for first-time buyers). Currently, the tax is only due on properties worth more than £250,000, or £425,000 for first-time buyers.
Simon Rubinson, RICS chief economist, said: “The UK housing market appears to be losing some momentum as the expiry of the temporary increase in stamp duty thresholds approaches. Some concerns are also being expressed by respondents about the re-emergence of inflationary pressures and the more uncertain geopolitical environment.
“That said, looking beyond the next few months, sales activity is seen as likely to resume an upward trend with prices also moving higher.”
