UK House Prices Stagnate in March Amid Tax Changes, Says Nationwide

London, April 1 (Saudi Arabia Breaking News) – British house prices were unchanged in March, according to data released on Tuesday by mortgage lender Nationwide, as the property market responded to recent tax changes and broader economic uncertainty.

The flat reading came in below expectations, with a Reuters poll of economists forecasting a 0.2% month-on-month increase.

As of Tuesday, the UK government has implemented changes to property transaction taxes—known as stamp duty—by lowering the price threshold at which buyers become liable to pay the tax. Analysts say this may have encouraged buyers to bring forward purchases, potentially softening market activity in the short term.

“The market is likely to remain a little soft in the coming months since activity will have been brought forward to avoid the additional tax obligations – a pattern typically observed in the wake of the end of stamp duty holidays,” said Robert Gardner, Nationwide’s chief economist.

Data from the Bank of England published Monday also showed a decline in mortgage approvals in February, while the Royal Institution of Chartered Surveyors reported that its members had observed a slowing in house price growth.

On an annual basis, house prices in March were 3.9% higher compared with the same period last year, slightly below the consensus forecast of 4.1%.

Nationwide said it expects the market to regain momentum in the coming months, supported by a strong labor market, rising real household incomes, and potential interest rate cuts from the Bank of England.

Financial markets are currently pricing in approximately a two-thirds probability that the central bank will cut rates in May.

[REUTERS]