House price growth in UK falters as demand wanes in JulyStaff Writer | August 11, 2016
Interest from new house buyers waned in July as sales fell, according to research by the surveying industry, pushing monthly UK house price growth to its slowest in three years and falls in London.
Houses in Britain A survey from the Royal Institute for Chartered Surveyors
UK house price growth in July fell to the lowest survey reading in three years, as just 5% of respondents saw a rise rather than a fall in prices, as the latest policy measures announced by the Bank of England last week lower the cost of mortgage finance in the wake of the concerns raised by the Brexit vote.
Rics' London price indicator fell 33%, which is broadly consistent with an outright drop in prices in the capital.
Price expectations were negative for the third month in succession as 12% more respondents predicted a decline prices over the next three months.
Waning demand is the key, as stock levels have reached record lows in parts of the country as new instructions declined significantly. Around 34% of respondents reported a fall in transaction with the monthly pace of decline in June and July at the fastest rate since 2008.
On the longer term, 12-month indicators are up in July from June and show both sales and price expectations at the twelve month time horizon returning to positive territory, albeit relatively modestly so.
This rebound in the key twelve month indicators suggests "confidence remains more resilient than might have been anticipated', said chief economist, Simon Rubinsohn, who also called for action from the government. ■