House price inflation drops further in June according to RICS
According to the latest RICS UK Residential Market Survey uncertainty continues to stifle the housing market as house price inflation dropped further in June.
They state that: At the same time there’s little encouragement for sales activity with agreed sales declining alongside new buyer enquiries and new instructions. This trend is also being reflected in medium term sales expectations where the twelve month indicator, while still positive, has slipped to its lowest level since the immediate aftermath of the referendum [net balance of +12%].
Average stock on surveyors books hits a new low highlighting ongoing supply shortage.
Simon Rubinsohn, RICS Chief Economist said: “The latest results demonstrate the danger, however tempting, of talking about a single housing market across the country. RICS indicators particularly regarding the price trend are pointing towards an increasingly divergent picture. High end prime properties may be seeing prices slipping back but, for good or ill, prices are continuing to move higher in many other segments of the market. Indeed, the disaggregated data suggests that this will continue to be the case over the coming months.
“Perhaps not surprisingly in the current environment, the term ‘uncertainty’ is featuring more heavily in the feedback we are receiving from professionals working in the sector. This seems to be exerting itself on transaction levels which are flatlining and may continue to do so for a while particularly given ongoing challenge presented by the low level of stock on the market”.
Read the latest RICS UK Residential Market Survey report in full click here.