House price growth in the UK continued to slow in July and near term expectations remain negative, according to a survey by the Royal Institution of Chartered Surveyors (Rics).
Only 5% of surveyors reported house prices rising rather than falling last month, down from 15% reporting an increase in June – to the lowest level in three years.
A total of 34% of surveyors reported a fall in house sales rather than an increase.
House prices continue to rise in most parts of the UK, but fell outright in the North of England, East Anglia, the West Midlands, and London.
Simon Rubinsohn, 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 cost of mortgage finance. 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.
“Critically, it is hard to escape the stark message regarding supply that is evident in the latest set of results with RICS data showing inventories on agents books around historic lows on average. This is a long running story that may have been exacerbated by recent events but clearly needs urgent action from the new government.”