Momentum slows in housing market, says Rics
Monday, October 13, 2014
Momentum in the UK housing market has faded with house price growth slowing to the same level as 16 months ago, surveyors say.
Demand from new buyers fell for the third month in a row in September, a survey from the Royal Institution of Chartered Surveyors (Rics) suggested.
In London, "caution took a particular toll", Rics said, where demand was down for the fifth consecutive month.
Rics members expected prices to drop in London in the next three months.
What does this mean?
Most surveyors still see prices rising elsewhere but said the market was far more subdued.
"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," said Simon Rubinsohn, chief economist at Rics.
Yet, Campbell Robb, of housing charity Shelter said: "The prospect of a stable home is becoming a distant dream for far too many young people and families."