The UK housing market stalled again last month amid concerns from buyers that interest rates could rise in November, according to surveyors. The Royal Institution of Chartered Surveyors said that housing sentiment is “now flatter than any point since last summer’s referendum result”. The percentage of surveyors reporting a fall rather than a rise in […]
The UK housing market stalled again last month amid concerns from buyers that interest rates could rise in November, according to surveyors.
The Royal Institution of Chartered Surveyors said that housing sentiment is “now flatter than any point since last summer’s referendum result”.
The percentage of surveyors reporting a fall rather than a rise in new buyer enquiries was 20% – the sixth consecutive negative reading.
The survey also found that 15% more respondents reported a fall in agreed sales rather than a rise – the lowest since July 2016.
The decline in sales was widespread, with the most acute falls in London and the South East.
Only Wales and the South West saw an increase in sales, while all other parts of the UK were flat.
Nationally prices held steady in September, with 6% more respondents seeing a rise in prices.
House prices in London and the South East fell for the fourth consecutive month.
East Anglia and the North East also saw prices fall in September with the rest of the UK continuing to see house prices rise.
RICS said it expects house prices to rise in all regions apart from London in the next year.
Simon Rubinsohn, RICS chief economist, said: “The stark divergence in key readings from the latest RICS survey demonstrates in the clearest possible terms just how important the regional narrative is at the present time.
“In part, this is a reflection of affordability constraints hitting the higher priced segments of the market. It is perhaps also indicative of a shift in economic momentum in the face of the increasing possibility of the first hike in base rates in over ten years.
“That said, we are continuing to see evidence of shortage of stock both in the new build and second-hand market. And despite the announcements at the recent Conservative Party conference, it is hard to envisage this changing any time soon. Against such a backdrop, prices in general are likely to remain elevated and indeed, as the survey indicates, continues to rise over the medium term in most parts of the country.”
According to the latest Halifax House Price Index, annual house price growth rose 4% last month, up from 2.6% in August – the highest figure since February.
On a monthly basis, house prices rose 0.8% – taking the average price of a property to £225,109.
