Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“As the financial year came to a close, house prices rocketed in the biggest annual rise seen since July 2014. This coincided with the last-minute rush for those looking to buy an additional property before the stamp duty tax surcharge came into play on the 1st April, which is likely to have played a role in temporarily boosting house prices.”
“Although this may come as another blow to those trying to get their foot on the property ladder, today’s rock-bottom mortgage rates and the huge number of products available means mortgages are far more affordable than we have seen in a very long time. However, meeting stringent affordability criteria and saving up for a deposit are significant hurdles hopeful homebuyers have to jump over before they can take advantage of today’s low-cost mortgages.”
“In upcoming months, we expect house prices to follow a steadier trajectory as the market adapts to the new stamp duty changes and those in the buy-to-let and second homes market weigh up how this will affect their finances. However, if the number of new homes coming onto the market remains subdued, prices will continue to rise for the foreseeable.”