House prices fall in April as stamp duty changes kick in

House prices fell in April as buyers faced paying thousands of pounds more in stamp duty, according to new figures from Nationwide.

Prices were down 0.6% month-on-month, the building society said.

The slowdown in the market was expected due to changes to stamp duty thresholds kicking in on 1 April.

Annual house price growth also slowed, but homes remain 3.4% more expensive than they were a year ago, with the average price now at £270,752.

“The market is likely to remain a little soft in the coming months,” said Robert Gardner, Nationwide’s chief economist.

He said there was a “significant jump” in transactions in March, with buyers bringing forward purchases to avoid the additional tax charges.

Mr Gardner added buying was likely to pick up as over summer due to earnings rising and the expectation of further cuts to interest rates

In her October Budget, Chancellor Rachel Reeves announced that the government had decided to reduce stamp duty rates in England and Northern Ireland would end.

The changes, which came into effect in April, means house buyers now pay the tax on properties over £125,000, instead of over £250,000, as was the case previously.

First-time buyers will also now have to pay stamp duty on homes costing more than £300,000, whereas before the April change, they did not have to pay the charge unless the property was above £425,000.

Nationwide’s house price data is based on its own mortgage lending, which does not include buyers who purchase homes with cash, or buy-to-let deals. Cash buyers account for about a third of housing sales.