RICS: house prices likely to slip later this year
In its June Housing Market Survey, the Royal Institution of Chartered Surveyors (RICS) reports that buyer enquiries fell for only the second time since the latter part of 2008.
At the same time, new instructions rose to their highest level for three years, weakening optimism over future house price growth as the average stock on estate agents’ books increased to 67, up from 62 in May.
In June, only 10% more chartered surveyors reported a rise, rather than a fall, in house prices down from 22% more reporting a rise a month earlier.
Looking ahead, 4% more chartered surveyors expect house prices to fall, down from a positive reading of 4% in May.
Against this backdrop sales volumes are expected to increase in months ahead, as RICS spokesman, Jeremy Leaf, explains: “A shortage of stock has been one factor holding back transaction activity in the housing market but the abolition of HIPS is helping to belatedly address this issue.”
However, he adds: “With supply of property now beginning to outstrip demand there is a risk of some modest slippage in prices during the second half of the year.”