UK House Prices Fall: Is Now A Good Time To Buy A Home?

UK house prices recorded their biggest monthly fall for more than two years in June, according to mortgage lender Nationwide. Is now a good time to buy?

Prices fell by 0.8% last month, the sharpest decline since February 2023, which the building society said may reflect weaker demand following the changes to stamp duty in April.

Over the year, prices were up 2.1%, although that was the slowest annual growth rate for nearly a year.

However, Nationwide said it expected activity in the housing market to pick up in the months ahead.

He noted that the unemployment rate remains low, earnings are still outpacing inflation and borrowing costs could become cheaper if the Bank of England makes further cuts to interest rates.

Changes to stamp duty that came into effect in April mean that housebuyers in England and Northern Ireland now pay the tax on properties over £125,000, instead of over £250,000, as was the case previously.

First-time buyers also have to pay stamp duty on homes costing more than £300,000, whereas before the April change, there was no charge unless the property was above £425,000.

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