House price gains slow, says RICS
House price gains slowed in February to its lowest since May 2006, the latest industry survey showed, indicating the Bank of England's interest rate hikes are starting to take effect.
The Royal Institution of Chartered Surveyors said the proportion of surveyors reporting that prices have risen compared with those saying that prices had dropped, slowed to 24% in February from 28% the month before.
The latest figure is in line with forecasts and still remains just above an average of 21.6%, the report added.
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Nevertheless, "The interest-rate rises have started to worry would-be buyers, with many concerned that they will be unable to meet mortgage repayments,'' said RICS spokesman Ian Perry.
Three interest rate hikes have started to eat away at buyer affordability with a net balance of 19% more surveyors reporting a fall, a marked deterioration from January's 6%.
"New buyer enquiries are likely to weaken further in the coming months as January interest rates takes effect on the market," RICS added.
