UK housing market paused but could take off again, according to surveyors

According to surveyors, the UK housing market has paused, but could take off again over the next 12 months.

A survey by the Royal Institute of Chartered Surveyors (Rics) revealed house price rises slowed significantly in the three months to the end of July, with new buyer inquiries, home sales and new instructions also in decline.

However, a separate survey indicated renewed confidence in commercial property.

Just 5% more of those surveyed recorded an increase in house prices rather than a fall, down from 15% in June and the lowest reading since 2013.

The surveyors recorded the fasted decline in property sales since the financial crisis in 2008, however looking forward, a total of 23% of those surveyed expected house prices to rise rather than fall compared to a neutral level of zero in June.

Surveyors have forcast that over the next five years, prices will rise 4% per year in London, and 3% across the UK.

Simon Rubinsohn, Rics’ Chief Economist, said: “The housing market is currently balancing a raft of somewhat mixed economic news alongside the latest policy measures announced by the Bank of England, which have already begun to lower cost of mortgage finance.”.

In addition to the uncertainty of the Brexit vote, the drop in house prices escalated due to the stamp duty hike, which was introduced in April and saw landlords rush to buy property to avoid the higher levy on purchases of investment properties. A seasonal slowdown has also accentuated the decline.

According to another survey by Halifax, it is too early to determine whether Brexit has already had an impact on the housing market.

Soaring prices of property and a lack of affordable housing has seen home ownership in the UK fall to its lowest level since 1986, with many not able to get to access to the housing market.

 

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