United kingdom housing industry slump continues because of Brexit uncertainty and stamp duty increases

The nation’s housing industry remains within the doldrums, considered lower by Brexit-related uncertainty and stamp duty increases, based on the latest report from surveyors.

The August survey snapshot in the Royal Institution of Chartered Surveyors (RICS) shows a small rise in the total amount of surveyors expecting cost increases within the the following month from +1 percent to +6 percent.

However the studying for London is well in negative territory and hit its weakest level since 2008.

The balance also fell further into negative territory within the East of England.

There is an optimistic balance for Northern Ireland, its northern border West, Scotland and also the The West.

The nation’s three-month cost expectation balance continued to be slightly negative, with London and also the East again deep in negative territory.

“Brexit uncertainties [are] not helping [the] market, also stamp duty levels not helping,” stated Robert Ikin of surveyors Wright Marshall in Cheshire.

Subdued market

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The newest house prices report in the Office for National Statistics believed annual house cost development of 5.1 percent in This summer, unchanged from June, though lower from the rate of 8.2 percent during the time of the June 2016 Brexit referendum.

The Halifax index demonstrated monthly development of 2.6 percent in August, up from 2.1 percent in This summer.

However, the Nationwide’s index reported growth slowing from 2.9 percent in This summer to two.1 percent in August.

Capital weakness

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Before last year’s referendum the Treasury forecasted that house prices in 2018 might be 10 to 18 percent less than otherwise in case of a Leave election.

In the 2015 Fall Statement, the prior Chancellor, George Osborne, introduced a 3 percentage point stamp duty surcharge on second homes and residential properties purchased by buy-to-let investors, which required affect in April 2016.

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