UK house price growth fell to its flattest level since 2013 in July, spurred by political uncertainty and low levels of stock, according to the latest RICS UK Residential Market Survey.
The survey’s national price growth indicator fell to 1% last month, which means there were just 1% more respondents who reported growth in house prices than there were those who reported falls. This was down from 7% in June.
There were notable differences across the country, with Wales, Northern Ireland, the West Midlands and the South West all showing price growth. However, London remained negative, in line with the previous three months, and the South East fell into negative territory as well.
Expectations among chartered surveyors suggested prices are likely to stay flat over the next three months, but a net positive 28% of respondents anticipated a rise in the next 12 months.
Sales activity was also expected to remain low, with 5% more respondents reporting falling buyer enquiries and agreed sales in the past month. The main reason, the survey said, was the stock of new listings falling for the 17th consecutive month. As a result, stock levels remain close to record lows.
Simon Rubinsohn, chief economist at the RICS, said: “Sales activity in the housing market has been slipping in the recent months and the most worrying aspect of the latest survey is the suggestion that this could continue for some time to come.
“The flatter trend in price growth is arguably a silver lining but there is no real indication that the housing market will become materially more affordable anytime soon. Hence the need for the government to press ahead with the build to rent initiative as well as continuing to focus on other tenures alongside home ownership to try address this critical issue.”
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