UK house prices continued to rise in July and were expected to continue to do so so over the year ahead as a result of a “severe lack of stock”, the results of a survey revealed.
The Royal Institute of Chartered Surveyors said the net balance of respondents reporting higher prices last month hit 63%, moderately lower than the high of 78% recorded in June, but little changed from 65% in June.
July’s reading also remained comfortably above the long-run average of 13% for the indicator, indicating that a “firmly upward trend” remained in place, RICS said.
“Although house price growth is likely to continue to ease, respondents still anticipate prices will be modestly higher than current levels in a year’s time,” RICS senior economist Tarrant Parsons said.
House sales however continued to decline across July and predictions for three months hence were in negative territory and for 12-months ahead they were at their most downbeat since March 2000.
The net balance for the latter declined from -21% in June to -36%.
New buyer inquiries meanwhile saw a third consecutive month of negative readings at -25%.
“Amid a backdrop of sharply rising living costs, slowing economic growth and higher interest rates, it is little surprise that housing market activity is now losing some momentum.
“With monetary policy set to be tightened further over the coming months, sales expectations point to a further softening in transaction volumes going forward.”