UK housing market slowdown is bottoming out

[LONDON] A slowdown in Britain’s housing market appears to be levelling off as measures of buyer demand and agreed sales moved away from recent lows, the Royal Institution of Chartered Surveyors (RICS) said on Thursday (Sep 10).

RICS said that its house price balance rose to a five-month high of -28 in August from an upwardly revised -29 in July, while the net balance for new buyer enquiries rose to its highest since January at -19.

“August’s results show a market that is gradually finding its footing, with key activity indicators having become progressively less negative over recent months. That said, any potential recovery remains fragile,” RICS Head of Market Research Tarrant Parsons said.

RICS members expect property prices to fall further over the next three months but to be stable over a 12-month horizon

London has the most negative price balance while Northern Ireland reports rising prices

RICS’ sales expectations balance rose to -3 in August from -13 in July

Rising demand from tenants and fewer properties from landlords has pushed the net balance for rents over the next three months to +44 from +33

RICS said the prospect of higher interest rates or heavier property taxation after October’s annual government budget statement could weigh on prices

Mortgage lender Lloyds reported a 0.4 per cent annual fall in house prices in August while Nationwide reported a 1.6 per cent rise

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Britain’s Office for National Statistics reported a 3.7 per cent annual rise in rents for private-sector housing in July and a 2.0 per cent rise in house prices in the 12 months to June. REUTERS