House prices have fallen by the largest amount in 4 years in the run up to the EU referendum.
After the increase in stamp duty on buy-to-let properties took effect in April, landlords rushed to purchase property at the start of the year so as to avoid the added charges. Since then, activity in the property market has slowed down with property prices falling by 0.4% in May; the steepest fall since November 2011. This may not be attributed solely to the buy-to-let stamp duty increases though, as a new report suggests that many people are being cautious with their finances ahead of the EU referendum.
Post-Brexit economic uncertainties have been pointed to as the reason that the average house price paid across England and Wales in May was £293,599 - £1,312 lower than in April. Governor of the Bank of England Mark Carney has predicted that Britain will be sent into recession should the country vote to leave the EU and Chancellor George Osborne has said that Britain would “lose control” of its economy in the event of Brexit. George Osborne has also said that property values could decrease by as much 18%. These types of predictions and the overall uncertainty about Britain’s future has prompted a slowdown in the housing market as more people choose to wait to see what lies ahead for the British economy before buying property.
More information on how property prices have been affected in the run up to the EU referendum can be found on the This is Money website.