Tax Relief

Indicators of a delicate slowdown within the housing market as tax breaks – RICS

The monthly membership survey by the Royal Institute of Chartered Surveyors (RICS) showed signs of a slowdown in the property market in July as stamp duty relief began to wear off.

With a net balance of -9 percent of the survey participants, the inquiries from new buyers increased, while the responses at -21 percent showed a growth in newly agreed sales.

Both indicators had weakened since June when the results for these indicators showed 10% and -1%, respectively.

Surveyors in most of the UK regions also saw a decline in sales.

Looking ahead, five percent anticipated an increase in transactions over three months, while these declined to -2 percent over twelve months.

The new instruction indicator recorded a net balance of -46 percent, lower than the previous month’s -35 percent and the fourth decline in a row.

Low stocks

In terms of price, 79 percent of those surveyed expected a net increase over three months, while this was 66 percent over 12 months.

RICS said supply was “a determining factor” in continued price growth, with the new listing indicator at -46 percent, down from -35 percent in June.

In the case of apartment rental, 52 percent of those surveyed indicated an increase in tenant inquiries.

Jeremy Leaf, former chairman of the RICS shared apartment, now a real estate agent in North London, said: “These numbers confirm much of what we have seen on the ground since the stamp duty began to decline in late June. However, the difference has proven to be practically seamless and is only what we would have expected at this time of year. “

The RICS July survey covered 471 stores and had 264 responses.

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