House Prices

Bank of England “rhetoric” and the Mortgage Market Review are both dragging activity downwards, the RICS said this morning. While most surveyors reported an increase in prices, demand for property slowed back down to levels last seen at the beginning of 2013. By contrast, new instructions increased for the first time this year. Simon Rubinsohn, RICS chief economist, said: “Rhetoric from key officials at the Bank, including Mark Carney, alongside the introduction of the MMR are already slowing momentum, particularly in London. “Buyer inquiries in the capital are now slipping back, which suggests that the very sharp upward move in prices will flatten over the coming months. “Elsewhere around the country, we believe the more hard-fought recovery should remain intact.” Meanwhile, the Halifax has reported that – contrary to RICS findings – house prices slipped a little last month. It says that, on a “seasonally adjusted” basis, the average UK house price was £183,462, down from £184,464 in May. Annually, the Halifax puts house price inflation at 8.8%. Stephen Noakes, the Halifax mortgages director, said: “Housing demand continues to be supported by an economic recovery that is gathering pace.” - See more at: http://www.propertyindustryeye.com/bank-england-housing-market-rhetoric-scaring-buyers/#sthash.2VgkNyb9.dpuf