The Royal Institution of Chartered Surveyors (Rics) has boldly predicted that the currently rising UK average house price will slow down over the next three months.
From April 2016, landlords and second home owners face a 3% stamp duty surcharge on new purchases.
According to RICS this will slow price rises, but only in the short-term and the majority of surveyors still expect house prices to rise by 25% over the next five years.
“Over the past three months, we have witnessed a surge in buy-to-let activity,” announced Simon Rubinsohn, Rics chief economist. “Investors have rushed to purchase homes before the stamp duty surcharge comes into effect. It is inevitable that over the coming months, April’s stamp duty changes will take a little of the heat out of the investor market.
“While there remain significant doubts as to whether the government’s plans to encourage a more robust development and construction pipeline will be sufficient to address the housing crisis, long-term price indications for the housing market remain strong.”