Housing: Region's property prices drop as market remains stagnant

HOUSE prices in England and Wales remained broadly unchanged for the third month in a row during April.

Land Registry figures published yesterday show the average cost of a property edged ahead by just 0.2 per cent during the month, following a 0.1 per cent fall in March and a 0.2 per cent gain in February.

The data reflect other indexes that show that the housing market suffered a slow start to the year when severe winter weather in January co-incided with distortions caused by the end of the stamp duty holiday.

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But despite the small monthly gain, the annual rate of house price growth rose to 8.5 per cent at the end of April, the highest level since September 2007 and the 14th consecutive month during which it has improved or stayed the same.

The average home in England and Wales now costs 165,596, in line with levels last seen in September 2008.

The number of properties changing hands also increased slightly during February, the latest month for which figures are available.

House prices were higher during April than they were a year earlier in all regions of England and Wales.

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Although prices in Yorkshire and the Humber crept ahead by just 0.7 per cent during the 12 months, this was offset by a decrease of 2.2 per cent in the last month.

A Land Registry spokesman said they thought house prices would struggle to make significant gains in the coming months, and despite picking up modestly, market activity would remain limited.

Landlords to sell-up over tax changes

A quarter of landlords claim they are considering quitting the buy-to-let sector ahead of the new Government's planned increase in capital gains tax.

Around 26 per cent of landlords said they were thinking about selling their properties before the tax is increased from its current rate of 18 per cent, according to lettings agency network LSL Property Services.

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A further 71 per cent of investment landlords said a rise in the tax would make them reconsider making future investments in property.

Nine out of 10 landlords also said they opposed increases in capital gains tax.

The Government aims to raise capital gains taxes to a level similar to those on income, which could mean the tax will be increased from its 18 per cent to 40 per cent or more.

Although landlords make money from both renting out their property and house price rises, they tend to favour the capital gains.