UK property market bounces back, except in London
Surveyors expect house prices and sales to increase in the coming months following a drop in confidence after the EU referendum, according to a survey from the Royal Institution of Chartered Surveyors.
Lucian Cook, UK director of residential research at property firm Savills, commented, “After the initial shock response, the Rics survey suggests a slowing of house price growth rather than anything more dramatic, and now points to more modest falls in new buyer enquires than were initially shown. “Incredibly low borrowing costs have undoubtedly contributed to this more benign picture, but much will now depend on how buyer sentiment ebbs and flows as negotiations to leave the EU progress and their likely impact on the wider economy.”Hansen Lu, property economist at Capital Economics, added, “With buyer numbers still falling and confidence still shaky, the weakness in transactions will last for several months yet, while house price growth will continue to ease. But with the recent economic news taking a more positive tone, it looks increasingly likely that the housing market will avoid catastrophe.”Rics said there remained a real shortage of property for sale that "looks set to persist for a while yet" and that would continue to prop up asking prices. During August – traditionally a slow month for the market – surveyors reported that average stock levels were close to a record low.Brian Murphy, from the Mortgage Advice Bureau, said, "Whilst the survey is based on sentiment rather than hard data, this provides us with a good temperature check in terms of what surveyors up and down the country are observing."This is in line with other data released from lenders such as the Halifax, which supports the same point of view that, after a deep intake of breath in June and allowing for the traditionally quieter summer hiatus, the overall market picture for most of the UK is stable with the continued lack of supply being the underlying factor that is likely to underpin the market in the months to come."
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