House price growth slowed this September to its lowest rate in 16 months, according to the latest Residential Market survey from RICS.
The survey found that new buyer demands have fallen for the third consecutive month, also showing that in London perceptive new buyer demands have fallen for its fifth consecutive month. This has not been seen April 2012!
Stock coming onto the market vertically remained unchanged during September, leaving surveyors reporting a ‘return to more sensible prices’ as properties staying on the market longer are now starting to receive offers below the current asking price.
Mr. S. Rubinsohn, chief economist at the RICS, has said demand and supply were “more balanced” than they had been in previous months, lessening the pressure on prices.
He goes on to say: “This is a healthy development. Part of this is down to the Bank of England becoming more vocal about the risks, part of this is down to affordability, part of this is down to the new mortgage rules and part of this is down to expectations of higher interest rates.”
“However ideally, more supply should be coming onto the market, but with interest rates still at historically low levels and long term house price expectations positive, households are not under any real economic pressure to sell.”
However, the survey did also find that surveyors are expecting prices to rise again across the UK in the next 3 months, all expect London.
Read more about the latest RICS Residential Market Survey here.
Author: George Mitchell