House prices pause for breath, but will rise again soon

House prices pause for breath, but will rise again soon
The Royal Institute of Chartered Surveyors (RICS) has shown that there was a significant slowdown in house prices in the three months to July 2016.

It also said agents reported 34pc of agents saying that sales transactions had fallen since June.

However, its findings immediately followed up with suggestions that price increases will pick up quickly in the next 12 months.

RICS conducted a poll of surveyors and found that there was a 50/50 split on whether they thought prices would rise or fall into 2017, but a follow-up showed that a majority of 23pc expected prices to go up.

Expectations had fallen though - six months ago, 66pc of agents predicted price rises.

RICS' chief economist, Simon Rubinsohn, said: "It's not altogether surprising that near-term activity measures remain relatively flat.

"However, the rebound in the key 12-month indicators in the July survey suggests that confidence remains more resilient than might have been anticipated."

Across the country, agents typically expect house prices to rise by 3pc a year for the next five years, and 4pc a year in London.

Meanwhile, a separate survey suggests that demand for office space in London has bounced back since the referendum vote.

Commercial property company CBRE found that the amount of space being taken by businesses rose 25pc from June to July, the equivalent of one million square feet being used by companies in the capital.

Since the Bank of England's decision to cut the base rate to 0.25pc, cheaper mortgages are also likely to fuel house prices in the coming months. Annual house price growth is running at 8.4pc according to Halifax, and 5.2pc according to Nationwide.

The news of house price growth will be met with glee by current homeowners and landlords, who may have feared negative equity in their property. First-time buyers will not be so pleased, as the base rate cut will drive prices higher.

If you have any enquiries about your local property market, or plan on expanding your portfolio in the coming months, please contact your local office today, our team will be happy to answer your questions.