"May’s correction in property values also follows on from a surge in activity earlier in the year, when second-home buyers and landlords brought forward their purchases to avoid the stamp duty surcharge."
The data also reported the weakest May for home sales in five years, after changes to stamp duty caused a rush of buy-to-let sales in March.
London’s house prices fell by 0.3% (£1,769) month-on-month, which e.surv attributed to uncertainty around the upcoming EU referendum.
However house prices in Slough defied the trend, jumping 23.3% year on year, with values lifted by the new Crossrail development and an increase in tech jobs.
Richard Sexton, director of e.surv chartered surveyors, commented: “The housing market is holding its breath ahead of the EU referendum and after a rapid sprint at the start of the year. This 0.4% dip in average house prices in England & Wales since April will be a welcome respite for those hoping to get their first foot on the ladder. May’s correction in property values also follows on from a surge in activity earlier in the year, when second-home buyers and landlords brought forward their purchases to avoid the stamp duty surcharge. That tax hike and the Government’s anti-landlord policies are weighing down the market, but the main factor is short-term confidence ahead of the 23rd June referendum.
“The year-on-year growth in house prices has also slowed, decelerating to 6.8% in May, from 7.7% in April. With the Chancellor predicting that a Brexit from the EU would reduce property values by at least 10%, many buyers are holding off until after the uncertainly surrounding the referendum has been resolved."
