Number of homes on the market hits record low

THE number of homes on the market hit a record low as house price growth slumped in July as a result of Brexit uncertainty.

The level of market activity, such as the amount of new buyer inquiries and the number of agreed sales, continued to fall, according to the Royal Institution of Chartered Surveyors.

July’s residential housing market survey posted the lowest reading in three years for recent house price growth: just 5pc more of those surveyed saw a rise rather than a fall in prices. Predictions for house price growth in the next three months remained negative across the country.

Those polled said the outlook for the next 12 months was slightly more positive, with 23pc more people expecting prices to increase, compared with last month’s survey which put that number at zero.

London and East Anglia are the only areas in the UK where prices are expected to fall in the next year. But over the next five years, surveyors have forecast prices will rise 4pc per year in London, and 3pc nationally. The Rics survey is widely seen as a good indicator of future house price changes. Comments made by many of the surveyors indicated that the responses in July were partly due to a seasonal slowdown, as well as uncertainty caused by Brexit.

Part of the problem is that stock levels are at record low levels in many parts of the UK, and there is a lack of properties coming on to the market to replace those sold. The amount of new properties coming on to the market contracted at the fastest pace on record in the last three months.

John Frost, an estate agent with the Frost Partnership in Slough, said: “Since the Brexit [vote] the market seems to be stabilising, although buyers are cautious with their offers. The market, due to the time of year, will quieten and therefore September will be a good test of the strength of the marketplace.”

Zoopla, the online property portal, said that in July 32.6pc of properties listed had their prices slashed, but, despite uncertainty over Brexit, this was an increase of just 1.5pc on the previous month. Seventeen of the 20 areas with the most reduced properties were in the north of England.