You are here: Home - Mortgages - Buy To Let - News -

House price growth continuing to slow ‒ RICS

Written by:
The rate of house price growth dipped in August according to the latest residential market survey from the Royal Institution of Chartered Surveyors (RICS).

A net balance of plus 73 per cent of survey respondents reported rising prices, compared to the plus 81 per cent seen in recent months.

This was coupled with agents reporting falls in the number of properties making it to market, with a net balance of plus 37 per cent of those surveyed saying listings had fallen over the last few months. Listing levels have fallen for eight out of the last nine months, resulting in estate agent stock levels dropping close to record lows.

RICS noted that new buyer enquiries fell for the second month in a row as well, with a net balance of negative 14 per cent of respondents saying they saw fewer house hunters, a further decrease from negative nine per cent of respondents in July.

Tarrant Parsons, economist at RICS, said that the latest results inevitably pointed to the market “taking a breather” following the frenzied activity seen ahead of the first Stamp Duty holiday deadline.

He continued: “That said, while momentum has eased relative to an exceptionally strong stretch earlier in the year, there are still many factors likely to drive a solid market going forward.”

Tomer Aboody, director of MT Finance, said that while the scale of recent price growth was unsustainable, the fact that there is a reduced amount of housing stock available for sale meant that prices would continue rising, albeit at a slower pace.

Aboody added that the fact that borrowing is still relatively cheap will also boost house prices.

He continued: “The Stamp Duty holiday incentive has proven to be an overwhelmingly successful trigger in getting the housing market moving. It has increased productivity, providing a certain indication as to where and how the government can encourage future activity by reforming stamp duty levels.”

Jeremy Leaf, a former residential chairman of RICS and now an estate agent, said that he was seeing demand reducing in part because of the tapering away of the Stamp Duty holiday, but also because many would-be buyers and sellers have been on holiday.

Leaf added: “In the past few weeks, the return to work and school has contributed significantly to renewed market activity. Encouragingly, we have also noticed an increase in valuation appraisals which should help to redress the sharp imbalance between supply and demand as well as further help to keep prices in check.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week