New data released by Nationwide and Hometrack show that overall UK residential property values have fallen when compared to this time last year and the fall has been attributed to the changes in stamp duty.
The average residential property value in March 2012 was £163,327. That is 0.9% lower than property prices were in March 2011, the largest fall in UK house prices since June last year.
Nationwide’s figures showed a fall in nearly every region of the UK, compared with the previous quarter and data from Hometrack shows a clear North – South divide.
However residential property prices increased by 0.6% in the north of England, property values also increased in Scotland, and Greater London.
UK mortgage applications were also affected by Stamp duty changes, approvals dropped to 48,986 in February 2012, some 9,000 lower than the 25-month high recorded in January 2012, the lowest mortgage approval figures for three years, according to the Bank of England.
UK residential property prices may have fallen for the first time in six months, but UK landlords with Rent Guarantee insurance are still smiling.
Buy To Let landlords remain unfazed by the dip in UK residential property prices as they continue to maximise their rental returns, as demand for rental property continues to increase. In fact BTL landlords have been experiencing higher rental yields during the past 6 months than at any other time since the economic crash in 2007.
UK landlords are utilising specialist products and services such as Rent Guarantee insurance to keep the cash coming in, ensuring that the rent is paid, irrespective of any changes to their tenants circumstances.