The July Royal Institution of Chartered Surveyors (RICS) report shows that house prices are “losing momentum” and sales are “flatlining” amidst Brexit uncertainty.
According to the survey, 69 per cent of property professionals said that sales prices were coming in below asking prices for homes marketed at more than £1 million. For properties on the market for up to £500,000, 59 per cent of surveyors reported that sales prices were at least level with asking prices. Overall, a net balance of 9% of surveyors reported house prices falling rather than increasing.
Looking ahead, surveyors expect house sales for the next few months to be flat, with many expecting prices to fall further.
Simon Rubinsohn, RICS Chief Economist, said that the UK-wide picture provided “little comfort for the market”.
“Indeed, the forward looking metrics on prices and sales also seem to be losing momentum as concerns, clearly voiced in the anecdotal feedback, both about Brexit and political uncertainty heighten.
“Some support may be provided by an easing in the cost of money which could feed through into lower mortgage finance costs, but this may be insufficient to provide a spur to lift activity given the clouds hanging over the economy.
“Meanwhile, the lettings market data continues to send a very strong message that institutions need to upscale their build to rent pipeline to address the shortfall resulting from the decline in appetite from buy to let investors. It is significant that the near-term rental expectations indicator has climbed to a three-year high.”
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