Estate agents report housing market slowdown
The latest housing market survey from the National Association of Estate Agents (NAEA) has highlighted a slowdown in the UK housing market during July.
It suggests the five interest rate rises since August last year are starting to impact on consumers, helping cool household spending.
Estate agents reported a slide in the number of registered buyers, the number of properties on their books and sales per agent last month.
The number of people looking to buy a home fell 2.5% in July, with agents reporting an average of 314 buyers registered versus an average of 387 this time last year, the lowest figure since December 2005.
In addition, the number of properties for sale dropped almost 34% in July, with the NAEA worried that home information packs (HIPs) will have a further adverse effect on housing supply in the months ahead.
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"The dramatically reduced figures reported by agents are clearly quite concerning," said NAEA president Stewart Lilly.
"It is apparent that the summer season coupled with the interest rate rises has clearly affected buyers and sellers during the month, leading to the significant drops in buyers, sales and stock."
He added that the turbulent weather has also hurt the market.
"The next couple of months are likely to see the housing market continue to be slower than usual for the time of year as buyers and sellers gain back some confidence and much needed equity, enabling them to get moving once again."
