House prices see biggest fall since November 2011

The data also reported the weakest May for home sales in five years, after changes to stamp duty caused a rush of buy-to-let sales in March.

London’s house prices fell by 0.3% (£1,769) month-on-month, which e.surv attributed to uncertainty around the upcoming EU referendum.

However house prices in Slough defied the trend, jumping 23.3% year on year, with values lifted by the new Crossrail development and an increase in tech jobs.

Richard Sexton, director of e.surv chartered surveyors, commented: “The housing market is holding its breath ahead of the EU referendum and after a rapid sprint at the start of the year. This 0.4% dip in average house prices in England & Wales since April will be a welcome respite for those hoping to get their first foot on the ladder. May’s correction in property values also follows on from a surge in activity earlier in the year, when second-home buyers and landlords brought forward their purchases to avoid the stamp duty surcharge. That tax hike and the Government’s anti-landlord policies are weighing down the market, but the main factor is short-term confidence ahead of the 23rd June referendum.

“The year-on-year growth in house prices has also slowed, decelerating to 6.8% in May, from 7.7% in April. With the Chancellor predicting that a Brexit from the EU would reduce property values by at least 10%, many buyers are holding off until after the uncertainly surrounding the referendum has been resolved."