Price growth and sales activity subdued according to RICS

August 10, 2017

The RICS UK Residential Market Survey for the month of July published today headlines ‘Activity in UK housing market faltering’.

The survey reveals record low stock numbers, political uncertainty and the aftermath of tax changes are obstacles hindering the UK housing market with price growth and sales activity subdued during the month of July.

The headline price growth gauge slipped from +7% to +1%, signalling prices were broadly flat over the period and representing the softest reading.

Simon Rubinsohn, RICS Chief Economist, commented: “Sales activity in the housing market has been slipping in the recent months and the most worrying aspect of the latest survey is the suggestion that this could continue for some time to come. One reason for this is the recent series of tax changes, but this is only part of the story. Lack of new build in the wake of the financial crisis is a more fundamental factor weighing on the market. And there are some very real consequences for the economy from all of this including the impact on the ability of people to be mobile when looking for work.

“The flatter trend in price growth is arguably a silver lining, but there is no real indication that the housing market will become materially more affordable anytime soon. Hence the need for the government to press ahead with the Build to Rent initiative, as well as continuing to focus on other tenures alongside home ownership to try address this critical issue”.

Read the RICS UK Residential Market Survey for the month of July in full click here.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

More than half of ‘Mumlords and Dadlords’ give rent back to help children buy their first home

54% of parents return some or all of the rent paid by their adult children to help them save for a deposit Just over a third say their children are living at home specifically to save for a house deposit; 45% say they feel like a landlord to their own child Parents charge £303 a…
Read More →
Breaking News

The First-Time Buyer Reality Shock

The First-Time Buyer Confidence Gap: 90% Feel Prepared, 71% Get an Unpleasant Surprise The First-Time Buyer Anxiety Index unveils a major ‘confidence gap’ which leaves first-time buyers unprepared for the realities of getting on the property ladder. Nine in 10 first-time buyers believe they are prepared and understand the home buying process before they begin…
Read More →
Breaking News

£50k hit when climbing the property ladder

The average homeowner in England faces an estimated £15,513 in associated costs when upsizing their home, according to the latest research by Yopa. However, in London this figure climbs as high as £47,704. The full-service estate agency analysed the estimated cost of upsizing across England, based on selling an average flat or terraced home and…
Read More →
Estate Agent Talk

Conveyancing causes more stress than property chains

The latest research by Lyons Bowe has found that 42% of recent homebuyers say conveyancing is the biggest barrier to a smooth property transaction, compared with just 19% who point to property chains. The survey of 1,000 recent homebuyers* examined which aspects of the transaction process had presented the biggest barriers to a smooth journey,…
Read More →
Rightmove logo
Breaking News

Britain’s most competitive summer rental hotspots

New analysis from the UK’s largest property platform Rightmove has revealed the areas where renters faced the strongest competition this summer, with several North West towns emerging as the toughest places to secure a home Wallasey and Birkenhead in Merseyside were Britain’s joint most competitive rental market during July and August, with an average of…
Read More →
AI in estate agency letting agency property
Letting Agent Talk

The 5 tasks lettings agents won’t trust to AI

AI must make lettings more human, not less, and that requires real rental intelligence. The latest research from Propoly has found that letting industry professionals see a clear role for AI in property management, but are reluctant to let it operate without human oversight, particularly when decisions involve people, complex circumstances or potentially significant consequences. Propoly…
Read More →