End of stamp duty holiday caused UK property market to 'lose momentum'

Posted: 26 Feb 2010 10:54:28 GMT

The end of the stamp duty holiday, coupled with the nationwide big freeze that was experienced throughout January, has caused the UK property market to "lose momentum", one expert has advised.

Martin Gahbauer, chief economist at Nationwide, says that even without the impact of these factors, it would have been difficult for house prices to maintain the upward momentum that was seen throughout 2009.

According to the building society, house prices fell in February, putting a nine-month run of increases to a halt.

The average value of property in the UK is now one per cent less than it was in January but Mr Gahbauer says it is difficult to ascertain whether this is a "temporary blip" or the start of a new downturn for the housing market.

Graham Norwood, writing for the Independent, recently advised that he expects to see a house price "double dip" with the market set to experience a "second credit crunch".

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