Insights

Market Slowdown

July 2014

Market Slowdown

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The housing market is now slowing down with new buyer enquiries showing a more modest gain in June according to a survey carried out by the Royal Institution of Chartered Surveyors.

The momentum of house prices increases continues whilst demand outpaces supply, but the current picture now shows a more balanced activity. The number of new properties listed on the market has increased slightly for the first time in 6 months, although the price balance remains broadly unchanged for the month. The rate of price growth in the London market now seems to be easing, whilst the South-East and Northern Ireland recorded the strongest price gains for the second consecutive month.

First time buyers continue to be key drivers in market growth and their activity does not seem to have been noticeably disrupted despite the introduction of the Mortgage Market Review. The number of new loans to first time buyers is 19% higher than the same time last year but remortgage lending has dipped by 26%. Buy to Let loans saw a 14% increase in number compared to the same time last year.

In summary whilst enormous progress has been made in the housing market since the start of 2014 the fundamentals of the market are still playing catch-up to pre 2008 levels.

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