Buyer demand is flatlining and sales growth moderating across the UK housing market, new research shows.
The Royal Institute of Chartered Surveyors says demand for new homes fell in July, the first monthly decline since January 2013, while the supply of new properties coming onto the market increased for the second consecutive month.
As a result of the rebalancing in demand and supply, house price growth across the country appears to be moderating.
A net balance of 49 per cent more respondents reported an increase in prices in July, down from 52 per cent in June and 56 per cent in May.
In London, both sales and new buyer demand fell more sharply than elsewhere, with enquiries falling at their fastest rate since April 2008.
A net balance of 10 per cent more respondents reported an increase in London prices, down from 30 per cent in June.
Comments from the survey suggested members were becoming more cautious.
However prices are still projected to rise nationally over the next year and expected to increase by 2.6 per cent on a 12 month view (compared with around 4 per cent at the start of the year).
The average number of sales per chartered surveyor, however, increased to 24.6 (up from 21.1 at the start of the year) and sales expectations remain positive across the country, albeit a little less so than previously.
Surveyors in Scotland appear most optimistic, anticipating a price gain of 3.3 per cent.
