Labour squeezes landlords as housing market hits North-South divide

Labour continues to squeeze landlords financially, amid signs the government could go further to increase its overall tax take from the housing sector.

According to Acadata House Price Index, the housing market remains steady despite stamp duty changes back in April.

According to the house price index, the average sale price of a home in England and Wales remained unchanged in April at £359,200.

Financial squeeze on landlords

Rob Owens, head of research at Acadata, says the big question now is whether the government will try to squeeze more money out of the housing sector.

He said: “The financial squeeze on private landlords continues under Labour and a key question now is whether this government will go further to increase its tax take from housing as a whole.

“Despite the pressures, this seems highly unlikely given that the housing market is a major contributor to economic growth. With its clear determination to increase housing supply government will surely want to avoid any moves which might damage that.”

Housing market reflects a two-tier dynamic

According to the House Price Index, the market continues to show signs of a “two-tier” divide between the North and South. While northern regions are experiencing steady growth, prices in the South are slipping.

London recorded a notable monthly drop of 1.7%, with average house prices falling to £642,386. Both the South East and South West also saw slight declines of 0.4%, bringing average prices down to £441,962 and £355,577.

In contrast, the North has shown greater resilience. The North East posted a monthly increase of 1.6%, pushing average prices up to £211,226. Meanwhile, the North West saw a 0.9% rise, with homes now averaging £262,836.

Mr Owens adds: “Annual price comparisons have improved modestly from a buyer’s perspective, with average prices currently 1.4% lower than a year ago. This is despite a significant short-term boost in demand from households moving before the end of stamp duty concessions on April 1st.

“Overall, the housing market reflects a two-tier dynamic, with northern regions reaching fresh market highs while southern regions, particularly London, continue to face affordability constraints.”