House prices dip following the easing of tax discounts

HOUSE prices dipped by 0.6% month on month on average in April according to an index - just as stamp duty discounts became less generous.

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Across the UK, the annual rate of house price growth slowed to 3.4% in April, from 3.9% in March, taking the average property value in April to £270,752, Nationwide Building Society said.

Robert Gardner, Nationwide's chief economist, said: "The softening in house price growth was to be expected, given the changes to stamp duty at the start of the month.

"Early indications suggest there was a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations."

Stamp duty discounts became less generous for some buyers from April 1 onwards.

Mr Gardner continued: "The market is likely to remain a little soft in the coming months, following the pattern typically observed following the end of stamp duty holidays.