There have been reports that the long-flat lining housing market is showing signs of slipping into negative territory.
On the one hand, negative wage growth and ongoing uncertainty are hitting prices.
On the other, continued government help and relatively willing lending continue to drive growth, especially regionally, and many are hoping any blip may be an election-only event.
Rates of annual growth have rapidly declined, as the spike in housing growth seen at the end of last year works its way out of the numbers. Annual growth in the Halifax Index is now just 0.6%.
This of course masks considerable variation, with London seeing negative housing growth, and the North and the Midlands seeing more positive figures.
On an annual basis, regional growth is now strongest in the East and East Midlands.
Transaction levels have also fallen, which could have more negative implications for the market – though commentators have put this down to jitters and uncertainty caused by the General Election result.
Against hopes of a post-election rebound, the RICS UK Residential Market Survey – which gives a look at market sentiment – remains deeply cautious, and points to a further deceleration in house price inflation.
It said the more cautious tone of respondents regarding sales activity also showed little signs of turning, with the net balances for new buyer enquiries, new instructions and agreed sales still stuck in negative territory.
While the market may not yet be crashing, there is little sign of it going up.
This article was originally published on 24th July 2017.
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