Rebound in housing market has ‘run out of steam’

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A RECENT rebound in the housing market has “run out of steam” following the ending of a stamp duty concession for first-time buyers, a study said today.

The number of newly agreed sales has weakened, with a balance of six per cent of chartered surveyors across the UK reporting decreases rather than increases in sales in April, the first time transaction levels have entered negative territory since last September.

Some 19 per cent more surveyors reported house price falls rather than rises and a balance of 17 per cent believe that prices are set to drop further, the Royal Institution of Chartered Surveyors (Rics) said.

London, which has had strong demand from overseas buyers, was the only region to report a general rise in prices, while the West Midlands and Wales experienced the worst price deteriorations.

Lenders and estate agents previously reported a rush to complete deals ahead of the stamp duty concession deadline in March.