House prices are slowing down in London and the South East

The rising cost of stamp duty is the main reason London and South East house prices are stalling, said NatWest senior economist Sebastian Burnside (pictured).

Burnside reckoned the 3% stamp duty surcharge on second homes and investment properties as well as the ongoing reduction of mortgage tax relief are putting people off in and around the capital.

He clarified that Brexit and natural dips in the economic cycle are other lesser factors.

Stamp duty costs home buyers £12,700 over lifetime

Burnside said: “The slowdown in house price growth that we have seen at headline level is almost entirely a London and South East phenomenon.

“If the UK averages were doing what the Northern and Midlands regions were doing there wouldn’t be very much to shout about.

“I think that stamp duty changes have to bear most of the hallmarks of having kicked this trend off.

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