UK house price growth slows down

barratts-new-housesUK house price growth is slowing after the EU vote particularly in London, according to the latest data from RICS. The monthly report from RICS shows the lowest survey reading in three years in July. This downward trend that is evident across the UK and the London price remains more quiet which is broadly steady with an absolute drop in prices in the capital but not quite as sharp as that reported in June. Market uncertainties following the referendum, recent tax changes, are often highlighted as contributory factors to the slowdown.

Andrew McPhillips, chief economist at Yorkshire BS, says: “Potential buyers are waiting for the impact of Brexit affecting the markets and their own finances and if this fall becomes more distinct, it could cause a short term drop in prices which may see the market self adjust as buyers look to make the most of the reductions. Such an increase in demand would ultimately push house prices back up again so the market may remain unstable in the coming months. But the desire to own a home remains strong and combined with the underlying lack of supply which supports house price growth in the long term.”

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