Slow-down in house price inflation but lack of stock is steadying the boat

Slow-down in house price inflation but lack of stock is steadying the boat

The latest Residential Market Survey from RICS has revealed that a further slow-down in house prices is on the cards. The June survey has reported that the headline price eased from 17% to 7% and that the price balance is now more subdued in the South East. Meanwhile, in the North and East Anglia, there has been little change.

London is continuing to see the most marked decline in house price inflation.

Director of Legal & General Mortgage Club, Jeremy Dunscombe, said: “Overall sentiment within the RICS survey has remained quite pessimistic over the past few months, and this outlook of a dip in house prices and market activity is not surprising. Yet when compared to the wider economic and political landscape, the housing market has continued to amaze many. It has remained consistently robust, despite everything we have seen over the last 12 to 18 months.”

Peter Williams, Executive Director of IMLA, added: “Whilst activity in the housing market may be beginning to slow, long-term price growth will be supported by supply-side shortages across the country and high customer demand.”

The lack of housing stock in the UK is still keeping house prices on a fairly even keel so there are still some excellent opportunities for buy-to-let investors in the market.