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House price growth continues to slow

From Property Talk Live on November 13, 2014

House price momentum in the UK continued to slow and new buyer demand tailed off in October, according to the latest RICS Residential Market Survey.

Nationally, new buyer demand slipped for the fourth consecutive month with London bearing the brunt of the decline, as 62% more surveyors reported a fall in new buyer demand across the capital. Meanwhile across the rest of the UK dipped to a net balance of -18%.

As a result of the weaker trend in buyer interest, sales expectations are now at their lowest point since the beginning of the year and the picture regarding near term price expectations is not dissimilar. Significantly,  Scotland and Northern Ireland have the most optimistic view on house prices in the run up to Christmas (net balances of 36% and 37% respectively).

Meanwhile, stock coming onto the market remained virtually unchanged in October (a net balance of -2%) continuing the trend which has been in place for much of the past year. As a result, even with the dip in demand, much anecdotal evidence from surveyors points to an ongoing challenge in securing adequate new instructions.

At a national level, the slow-down in buyer activity in the sales market stands in marked contrast to the lettings market, where tenant demand continues to grow strongly. Over the last quarter, this has particularly been the case in East Anglia, the north of England and Scotland and rent expectation remain generally firm with respondents’ anticipating an increase of around 2.5% over the next twelve months across the whole of the country.

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Source: Property Talk Live