Annual house price growth was slashed in March, failing to keep pace with the inflation seen when buy to let landlords were rushing to close property deals before the stamp duty tax hike.
Asking prices were up 1.3 per cent (£3,877) in March as compared to the month before, according to Rightmove.
Year-on-year, growth plunged to 2.3 per cent from 7.6 per cent in March 2016. This was because this time last year, buy to let investors were snapping-up properties before the deadline for the three per cent rise in stamp duty land tax.
In London, the average asking price grew 1.4 per cent month-on-month in March, equivalent to £8,656. The outer London boroughs have been driving house price growth in the capital:
|London average asking prices|
|Area||March 2017||February 2017|
Miles Shipside, Rightmove director, said: "While six consecutive years of price rises have been a gravy train for many home-owners, some of them are running into the buffers of affordability when they come to trade up.
"Meanwhile many would-be first-time buyers are being left waiting on the platform struggling to even get on board. Modest average wage rises and tighter lending criteria have limited buyers' ability to pay more."
With interest rates at rock-bottom, servicing mortgage debt has become incredibly cheap. However, banks have become very cautious with their lending, making it more difficult for buyers to access this cheap credit.