Housing market set for further uncertainty

House price inflation has dropped further in June, with sales activity following the same downwards trend, according to the latest RICS UK Residential Market Survey.

44 per cent of the survey’s respondents identified domestic political uncertainty as the biggest factor explaining the current state of the market, with 27 cent highlighting Brexit as the most important factor.

In June, 7 per cent of surveyors across the UK saw a rise rather than a fall in prices at the headline level. This has slipped from a net balance of 17 per cent in May, and is reportedly the lowest reading since July 2016.

Respondents saw a decline in newly agreed sales in June, with 5 per cent more respondents seeing a fall in sales over the month.

More than 45 per cent of those surveyed in Central London saw a decline in prices over the month, while the South East and East Anglia showed a flatter trend.

Contrasting this, 41 per cent more surveyors saw a rise in prices rather than a fall in June, and in Wales 38 per cent more respondents saw a rise rather than fall in prices over the month.

Prices also continued to rise in the West Midlands and the North West, reporting net balances of 33 per cent and 28 per cent respectively.