In its latest house price index, Rightmove says that the rush to beat the 3% stamp duty surcharge has resulted in a ‘chain reaction’ of higher demand in higher price brackets.
In April 2016 the average price of property coming to market typically for first-time buyers and investors dropped by 1.4% from March.
Prices instead rose by 0.6% for three or four bedroom detached homes and by 1.9% for the top of the ladder (four bedroom detached and five bedrooms or more).
Miles Shipside, Rightmove director and housing market analyst, said: “While some felt that there would be a stampede of existing landlords selling to other landlords, these figures indicate that many of those who sold during the buy-to-let rush were actually first-time sellers looking to trade up.
“They used the heightened demand from investors competing fiercely with first-time buyers to springboard themselves onto the next rung of the housing ladder.
“After several years of being held back from moving by post-credit-crunch price doldrums, they have now benefitted from a heady combination of price growth, historically cheap interest rates, and confidence of a quick sale with purchasers working to a tight deadline.”
Overall house prices rose by £3,843 to reach a record high of £307,033.
