Jump to content
House Price Crash Forum
Sign in to follow this  
rantnrave

Rics House Price Balance Hits 17-Month Low In October

Recommended Posts

(Reuters) - British house price growth slowed sharply in the three months to October to its weakest since May 2013, driven by more widespread price falls in London, a survey by the Royal Institution of Chartered Surveryors showed on Thursday.

RICS said its monthly house price balance fell to +20 in October from +30 in September, its weakest reading since Britain's economy started to pick up more than a year ago and at the bottom end of a range of forecasts by in a Reuters poll.

The drop was driven by a fall in the London index to -35 from -9 in September, representing the most widespread price falls in the capital in four years.

RICS said prices in parts of London were still firm, and that some of the fall was due to worries about increased taxation of luxury properties in the run-up to a national election due in May 2015. The RICS figures fit with broader data showing a slowdown in Britain's housing market, in which house prices were rising at an annual rate of more than 10 percent earlier this year, and by more than 20 percent in London.

"The flatter trend in the market is partly a reflection of potential buyers becoming a little more cautious ... as more stringent lending criteria has made it harder to access mortgage finance," said RICS economist Simon Rubinsohn. "However, with new instructions still flat ... it seems implausible that the dip in demand will result in very much of a decline in house prices," he added.

Lenders have been approving fewer mortgages since regulators required them in late April to make closer enquiries into borrowers' personal finances, and RICS said buyers had also been put off by high prices and the risk of higher interest rates.

Financial markets now expect the Bank of England to keep rates on hold until late next year -- a view that BoE Governor Mark Carney tacitly endorsed on Wednesday when the central bank slashed its inflation forecasts for the next 12 months.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   205 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.