U.K housing prices grew at their slowest pace in three years in July as Britain’s vote to leave the European Union and recent tax changes applied the brakes, according to a survey of property brokers. This was broadly unchanged compared with June, when the decline in sales was the fastest seen since 2008.
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However, RICS said there were a wide range of views among agents with some suggesting that activity had “picked up after an initial wobble”, while others cite the Brexit vote as having only a “modest or negligible impact”.
But this is a significant improvement on the -26% recorded in June.
More of those surveyed expect sales to fall than rise over the coming 12 months with a -2% net balance.
‘Clearly there are some buyers who feel it is just too uncertain at the moment but most seem determined to go ahead.
Simon Rubinsohn, chief economist at Rics, said: “The rebound in the key 12 month indicators in the July survey suggest that confidence remains more resilient than might have been anticipated”.
And the survey found prices had fallen outright in London, East Anglia, the North of England and the West Midlands.
However, data for prices, as well as expectations for prices, remained positive, as the supply of property coming onto the market continued to be constrained, with new instructions to sell falling sharply for the second month in a row.
The report quoted the views of surveyors, with one saying there had been a “seasonal summer slowdown rather than Brexit panic”.
“Unsurprisingly, there is uncertainty in the wider economy, as the Ulster Bank NI PMI (Purchasing Managers’ Index) highlighted earlier this week, and the housing market can not be immune”, he said.
Moody’s Investors Service said Wednesday that the United Kingdom mortgage market is also set to slow following the referendum due to lower demand for credit and falling house prices.
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