Estate agents have signalled that the housing market experienced a standstill in June, amidst a volatile global economy and adjustments to stamp duty.
Halifax's latest figures indicate that º£½ÇÊÓƵ house prices remained static in June following a 0.3 per cent decline from April to May, as reported by .
"Today's news suggests that house prices have dropped quarterly and that there has been no monthly increase in house prices, which demonstrates that the º£½ÇÊÓƵ housing market has faced considerable upheaval," commented Nathan Emerson, CEO of Propertymark.
He linked the market's instability to the uncertain global economic climate and the hike in stamp duty thresholds for England and Northern Ireland starting April.
Jonathan Hopper, CEO of Garrington Property Finders, observed that "the post-Stamp Duty lull in demand has collided with a deluge of supply... in some areas, the flood of supply seems almost biblical."
He noted a distinct change in behaviour on the ground, with many sellers not in financial distress but eager to move on due to fatigue from waiting for ideal conditions, now choosing to take action. "However, they are doing so in a landscape where buyers remain cautious amid sticky interest rates and lingering political and economic questions," Hopper added.
Autumn tax increases dampen rate cut optimism
The prospect of tax increases this Autumn has risen sharply last week when the government had to backtrack on its welfare bill, creating a £5bn shortfall in public finances.
Indeed, the Institute for Fiscal Studies (IFS) has issued a warning that Reeves might require up to £30bn to manage the welfare policy reversal, the backtrack on winter fuel payments, and GDP forecasts that have fallen short of expectations.
This situation virtually guarantees tax increases: "I don't really think there is [another way of doing it]," the departing IFS director Paul Johnson conveyed to the BBC.
Jeremy Leaf, a north London estate agent and former RICS residential chairman, expressed that concerns over potential tax hikes have dampened hopes for further interest rate reductions this year.
"The net result is slower, longer transactions and softening prices so sellers, particularly of higher-value homes, need to recognise market sensitivities if they want to stand out from the crowd," he advised.
