The housing market saw a boost at the end of 2015, possibly due to landlords seeking to escape the new tax increase that will come into effect in April. The Royal Institution of Chartered Surveyors (RICS) released data revealing landlords were showing high demand for property in December. This was not a surprise as many experts suggested that the delay in implementing the tax surcharge on property purchases by landlords’ and second homeowners’ properties would have those buyers rushing to the market.

The new tax rate in April will see property investors and second homeowners paying an additional 3% stamp duty surcharge compared to residential home buyers.

Some experts are predicting that with months left before the surcharge kicks in, the housing market will become skewed, especially in the first quarter. According to data from the Office for National Statistics, the average house price increased 7.7% in the year to November. Other housing price index reports there were increases ranging from 4% up to almost 10%.

This could impact first time buyers climbing on to the property ladder with such high increases coming upon them unexpectedly. The result could cause a new freeze of the property ladder without first time buyers available to take on starter homes.

After this boost from landlords, the buy to let purchases are expected to cool off after five years of increases.

Higher demand for mortgage lending could impact the competitive environment in which lenders had been operating for several months. It is yet to be seen how very much the rush to buy from landlords and second homeowners has tilted the housing market and what will result.