House price inflation falls

The number of Chartered Surveyors reporting a rise rather than a fall in house prices more than halved in the three months to June, but prices nonetheless rose for the 20th month in a row, a new study has shown.

The Royal Institution of Chartered Surveyors (Rics) research also revealed that new buyer enquiries fell at the fastest pace for 16 months, with instructions to sell also falling significantly.

Surveyor confidence was also dented, with many believing that interest rate hikes– the latest of which saw rates rise to their highest level for six years last Thursday – are now taking hold in the sector.

"House prices have finally started to cool significantly for the first time since the recent mini boom in the housing market got underway in 2006 […] the July rate increase may not mark the peak of the current interest rate cycle and earlier rate rises have yet to fully filter through. A softer landing for the housing market is in store as we move into the autumn," commented Rics spokesman Ian Perry.

Despite five rate rises in the past 11 months, the majority of house price indices still put the average UK house price at around £180,000.


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