House prices fell in March following the end of the stamp duty holiday for first time buyers. All properties will now be subject to the minimum 1% stamp duty. The slowdown in the housing market has been evidenced even in London where there has been a noticeable fall in demand. The market has been affected by a number of factors recently, including a recent rise in interest rates in the first quarter of 2012, concerns over the Eurozone, the threat of a double dip recession in the UK and rising oil and energy prices.
George Osbourne’s recent budget is unlikely to improve matters as he has proposed a 7% stamp duty hike for houses over £2m and a clampdown on companies purchased through companies.