The UK housing market loses steam, says RICS report
According to the latest UK RICS Residential Market Survey demand has slipped for a third consecutive month to September.
There appears to be greater caution exercised across the UK housing market as house price momentum and buyer activity slowed to the same level it was 16 months ago. In contrast the lettings market has continued to grow despite new instructions to let not keeping up with tenant demand.
New housing stock coming onto the market remained unchanged in September with a number of surveyors reporting a “return to more sensible prices” as properties that have been on the market for longer are beginning to receive offers below the asking price.
“Part of this is down to the Bank of England becoming more vocal about the risks, part of this is down to affordability, part of this is down to the new mortgage rules and part of this is down to expectations of higher interest rates,” said Simon Rubinsohn, chief economist at RICs.
The signs of a slowing house market are likely to be welcomed by the Bank of England as earlier this year they warned that Britain’s economic recovery would be at risk if property prices continued to rise faster than wages.
As demand and supply of properties in the UK is looking a little more balanced the market prices are beginning to ease and the RCIS says the outlook for prices next year will be far more subdued.
Written by: The Team | On: October 20, 2014