May 4, 2012The average price of a UK home fell sharply in April

The average price of a UK home fell sharply in April, according to the Halifax house price index, more than wiping out a rise in March when buyers rushed to take advantage of a tax break that was expiring at the end of that month.
The ending of the stamp duty holiday for first-time buyers in late March appears to have boosted home sales early this year as buyers strove to meet the deadline, and has probably contributed to the volatility in house prices in the last few months,
Average house prices in Britain are no higher than they were in July 2009, just a few months after they hit their trough.
Furthermore, some mortgage rates have risen recently due to lender’s higher borrowing costs in wholesale markets and this could well weigh down on housing market activity, However, there are signs that the stamp duty holiday had probably contributed to housing turnover. The volume of sales in the first quarter was the highest since the first quarter of 2008.