eMoov Prediction Proves Correct as Stamp Duty Fallout Continues in Property Market
The effects of April’s stamp duty increase continue this month, with property prices falling by 0.4% in May – the sharpest and steepest fall for five years. eMoov, the savvy hybrid estate agency, predicted this dip in prices last month, and has been keenly observing the consequences of the increase in stamp duty all over the country.
Russell Quirk, Founder of eMoov, says, “The new stamp duty surcharge for landlords and those purchasing second homes has had an enormous effect on the property market. Back in May, we correctly predicted that property prices would suffer a dip after soaring in the immediate aftermath of the increase – and there’s been a number of other side-effects and consequences of the tax hike.”
The average price of a home in England and Wales fell to £293,599, and London prices fell by 0.3% in total. It’s also been revealed that there are fewer rental properties being listed with estate agencies as a result of a decline in buy-to-let purchases. eMoov now believes this will force up rents in some areas of the country, as landlords try to offset their higher costs by passing them on to their tenants.
Quirk adds, “As well as seeing property prices fall slightly, we’re seeing real changes in the rental market, with less landlords now investing in buy-to-let properties. This has the potential to send private rental prices soaring in certain parts of the country, where demand will soon outstrip supply.”
The stamp duty increase seems to have been a catalyst for these significant fluctuations in the market – but the EU referendum has also played a key role. Short-term confidence in the property market has also been flagged as a key factor in falling house prices and climbing rental costs.
eMoov is a fixed-fee hybrid estate agency which can help landlords looking to buy another property to reduce the cost of buying a home. Those looking to sell up can also save by listing with eMoov – homeowners have saved an average of £4,462 by listing their property with the agency.
Quirk says, “It’s certainly a tumultuous time for the property industry, with these rapidly fluctuating rates and the fall-out from the referendum leading investors to put their plans on hold. We can’t affect the side-effects of stamp duty increases, but we can offer a cost-effective way to buy and sell property for a fixed-fee – no commission, no additional payments and no hidden costs.”
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