House price growth stalls as London weighs on rest of UK

HOUSE price growth and market activity are grinding to a halt, according to the Royal Institution of Chartered Surveyors, with London and the South East pulling down the national trend.

Its monthly survey of the housing market found a continued lack of activity in the housing market, with low levels of buyer inquiries for the 17th consecutive month.

Agreed sales were also low and in July there was a “sustained deterioration in the flow of fresh listings coming on to the market”. The number of properties on estate agents’ books is close to a record low.

Those polled did not think that activity would pick up nationally in the next three or 12 months, and in the short term prices are not expected to increase, with the measure at the lowest level since early 2013. However, over the next 12 months, prices are expected to increase slightly.

This slowing overall trend masks some brighter areas, such as Northern Ireland, the West Midlands and the South West. Surveyors in central London were the most cautious about any price improvements over the next 12 months, and that negativity is rippling further out of the capital: the South East fell into negative territory, recording its weakest reading since 2011.

Simon Rubinsohn, RICS’ chief economist, said: “Sales activity in the housing market has been slipping in recent months and the most worrying aspect of the latest survey is the suggestion that this could continue for some time.”

The National House Building Council reported that the number of new homes started in London in the second quarter of this year has fallen to the lowest level since 2012, a fall of 30pc compared to the same period in 2016.