House prices reach peak - but stamp duty weighs down growth
Updated:
House prices hit a record high this month but the pace of growth slowed following Chancellor Rachel Reeves' stamp duty hike.
Data from Rightmove shows average property prices reached a peak after rising 0.6 per cent to £379,517. But it was the slowest pace of growth recorded in May in the last nine years as buyer demand tumbled after property taxes rose in April.
The drop in the pace of house price growth followed a busier-than-usual March as buyers raced to beat the stamp duty deadline.
Hit: House prices reached a record high this month but the pace of growth slowed following Chancellor Rachel Reeves' stamp duty hike
From April 1, the Government lowered the thresholds at which the levy is paid, hitting cheaper homes with the tax, and increased the rates for buy-to-let landlords and those buying their second homes.
House hunters may have also been waiting for the outcome of the Bank of England's interest rate decision, analysts said.
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