Housing market activity fell after the EU referendum, according to chartered surveyors
Activity in the housing market is projected to weaken in the coming months, according to chartered surveyors.
The Royal Institute of Chartered Surveyors (RICS) said house price growth faltered in July and the outlook for house price growth "remains negative" in the aftermath of the Brexit vote and changes to stamp duty tax on second homes.
Read more: Everything you need to know about house prices since Brexit
RICS' headline price balance, which indicates how house prices are likely to move, dropped from +15 in June down to +5 in July – the lowest level for the indicator since April 2013. Interest from new buyers "continues to wane" RICS said, with the number of new buyers falling for the fourth month in a row.
"In line with the dip in demand and the worsening supply position, sales declined sharply. Across the UK, 34 per cent more respondents reported a fall in transactions, with the monthly face in decline in both July and June at the fastest since 2008," RICS said.
Simon Rubinsohn, RICS chief economist, said: "The housing market is currently balancing a raft of somewhat mixed economic news alongside the latest policy measures announced by the Bank of England, which have already begun to lower the cost of mortgage finance.
Read more: House prices are being cut by nearly 10 per cent in some parts of London
"Against this backdrop, it is not altogether surprising that near term activity measures remain relatively flat. However the rebound in the key twelve month indicators in the July survey suggest that confidence remains more resilient than might have been anticipated."
The survey from RICS comes after data from Zoopla showed house prices were up by nearly 10 per cent in some parts of the the capital. Knight Frank also reported recently that prime central London house prices are falling, and Halifax have reported a month-on-month fall in house prices in July.
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