House prices in the UK have hit record highs, despite a continued slump in London and the South East.
Annual house price inflation in parts of Wales has jumped by ten percent in the year to the end of March, according to the Your Move index.
Prices in the City of London dramatically slumped by 31.4 percent.
The overall decline across London and Wales was 0.1 percent in March.
Oliver Blake, managing director of Your Move said: “There’s a simple explanation for this stellar performance: forestalling.”
“Wales introduced a new land transaction tax in April, starting at a higher base, of £180,000, than stamp duty in England (£125,000) but at a higher rate, particularly for properties priced £400,000 to £925,000, with tax rates at 7.5 percent and 10 percent.
“Anticipating this, buyers have brought forward purchases of high value homes to avoid the new tax, just as they did ahead of the stamp duty hike in April 2016. Consequently, six of the eight most expensive local authority areas in Wales set a new peak price in March. Such high price growth in Wales is likely to prove short-lived.”
Prices in Swansea and Cardiff were up 9.7 percent.
Property expert and Emoov chief executive Russell Quirk believes the numbers for London represent the “fragmented” market in the capital.
“While there is still an appetite amongst London buyers evident by the number of visits to Rightmove, a lack of commitment is resulting in a reduction in the number of sales agreed in the capital.”
“This is hardly surprising when you consider the reality gap between the expectations of stubborn London sellers and the current market climate itself, coupled with a lack of diversity where stock reaching the market is concerned.”
The City of London was the biggest faller in London, followed by Southwark where prices fell 17.5 percent in the year to March.
