Nationwide: Will the housing market pick up steam after the UK's March house price growth flattened out?

March saw no increase in home prices before stamp duty thresholds were changed

March saw no increase in home prices as the real estate market seems to have slowed down in anticipation of stamp duty changes.

According to the most recent Nationwide House Price Index, average property values increased by 3 percent per year to 271,316 in March.

As buyers braced for increased stamp duty costs, the number, which hasn't changed since February, indicates that home prices stalled.

The first-time buyer stamp duty threshold was lowered from 425,000 to 300,000 as of today, April 1. Additionally, home-movers will now pay tax from 125,000 instead of 250,000.

The market has been driven by the race to meet the deadline in recent months, but it now seems that activity has slowed.

Given that the stamp duty holiday ends at the end of March, these price trends are not surprising, according to Robert Gardner, Nationwide's chief economist.

Since activity will have been pushed forward to avoid the additional tax obligationsa pattern usually seen in the wake of the end of stamp duty holidaysthe market is likely to stay a little soft in the upcoming months.

Spring is one of the best seasons to sell a house because of the longer days and potential for more showings.

The real estate market in the spring.

The average home price statistics are distorted by regional variations.

While average prices in Wales and Scotland increased 3point 6 and 3point 9 percent in March, Northern Ireland's annual price growth increased 13point 5 percent in the first quarter.

In England as a whole, prices increased 33% annually.

The North, North West, Yorkshire and the Humber, East Midlands, and West Midlands regions of northern England saw an annual increase in average prices of 4 to 9%.

This was better than southern England, which saw a more moderate increase of 2 to 5 percent annually.

At 3 percent yearly price growth, the Outer South East was the best-performing southern region. In the meantime, London's annual growth of 0.9 percent made it the UK's worst-performing region overall.

Semi-detached homes have experienced the largest percentage increase in price over the past 12 months, according to nationwide data, with average values rising 48% annually.

In contrast, annual price growth for apartments slowed to 2.3 percent this quarter compared to the previous one. Terraced properties saw a 4point 1 percent year-over-year increase, while detached properties saw a 4point 5 percent increase.

Would it be wise to purchase real estate now?

Purchasing a home will now cost more due to lower stamp duty thresholds.

Lower mortgage rates, however, may benefit homebuyers, particularly if the base rate continues to decline.

Additionally, the high levels of supply during the busy spring home selling season may cause house prices to decline or level off, lessening the impact of higher stamp duty rates.

"Despite broader economic uncertainties in the global economy, activity is likely to pick up steadily as the summer progresses, as underlying conditions for potential home buyers in the UK remain supportive," Gardner said, expressing confidence in the market's recovery.

"Really speaking, earnings are increasing at a healthy rate, and the unemployment rate is low (i.e. e. household balance sheets are solid after taking inflation into consideration, and if interest rates are further reduced in the upcoming quarters as we and the majority of analysts anticipate, borrowing costs should somewhat decline.

In the first quarter of the year, the stamp duty deadline helped boost house prices, according to Tom Bill, head of UK residential research at Knight Frank. He added, "We expect a dip in activity as demand effectively resets from April."

Supply is robust, which should maintain downward pressure on prices for buyers reentering the market with a level playing field. The US's unpredictable trade policy and the inflationary effects of policies like the changes to employer national insurance could keep borrowing costs higher for longer, even though activity should rebound by the summer.

"Estate agents Chestertons' head of sales, Matt Thompson, added: "Sellers expect a busy spring market, even though the rush of first-time buyers entering the market to beat the stamp duty deadline has slowed down.

"More homeowners are listing their homes for sale now than ever before in March, which gives homebuyers more options. However, because London's real estate market is among the most competitive globally, buyers must move quickly and begin their search as soon as possible.