29 May 2012
Paul Hunt, managing director of Phoebus Software said: “A double-whammy of the return of stamp duty for first-time buyers and receding confidence among lenders hit property prices last month. According to LSL’s House Price Index, transactions in April dropped by 19% and that such a precipitous drop in activity hasn’t pushed prices down further shows most of the drop in transactions was predominantly for lower value properties. But we’re also seeing the impact of reduced confidence among lenders as in April Greek politicians dithered and ultimately failed to establish a government, which has brought the liquidity-damaging possibility of a Greek exit to centre stage. As the eurozone crisis has continued to develop this month, it’s likely ongoing caution from lenders will put further downward pressure on prices in May”.