New research has revealed that in the month of July 2014, demand for houses in the UK fell across the country. The information was supplied by the Royal Institution of Chartered Surveyors. It also revealed that in London demand and sales fell more than elsewhere. Homes for sale also increased in the capital. This is the first time that demand for houses has fallen since early 2013. One reason for the drop in buyers is people concerned that they can’t afford to buy.
Surveyors also suggested that house prices would be rising faster outside of London than within the city. Only 10 per cent of respondents to the Royal Institution of Chartered Surveyors’ survey said that there had been an increase in prices. This is down from 30 per cent in June. Simon Rubensohn, chief economist at the Royal Institution of Chartered Surveyors, says that outside of London the housing market is showing more resilience. He suggests that this is mostly because the recovery in the market is only just beginning in some places, so more people are able to afford to buy.
In the past, the demand for buying houses has slowed because of people beginning to think about other things. After what is known as a “spring bounce”, where the housing market picks up, demand begins to slow down. Less people look to buy a house, because they start thinking about paying for their summer holiday instead of saving up for a home.
Surveyors believe that the housing market could have changed, due to possible higher interest rates on mortgages in the future. There have also been warnings from the Bank of England that it was watching out for a risk of a housing bubble developing.
Sales are expected to continue dropping in London over the next 12 months, according to the Royal Institution of Chartered Surveyors. The housing market in London has been described as “going into reverse”. The decline in buyers is the most rapid since the beginning of the Credit Crunch. However, in the UK housing market overall, prices are expected to increase by 2.6 per cent over the next year and sales will remain positive.
The Royal Institution of Chartered Surveyor’s doesn’t survey organizations such as estate agents in Rugby. Instead the information comes from a monthly survey of its individual members. A chartered surveyor is a property professional. They provide specialist advice on property related issues. Though their skills and services are diverse, they include valuing houses.
Meanwhile, in Scotland the housing boom is continuing. Over the last year, house prices have risen by an average of £800 a month. Growth in house prices has reached the highest it has been in four years. The average price of a home has increased by £9,353 to reach £164,105. In Edinburgh, the capital of Scotland and most expensive place to buy, prices rose by 4.2 per cent each month. This means the average cost of an Edinburgh home is now £239,659.