Real estate market cools as new buyers disappear

The previously booming UK property market has started to cool for the first time in months after waning stamp duty holidays dampened demand.

Requests from new buyers fell in July, according to the Royal Institution of Chartered Surveyors, with the majority of members of the trade body receiving fewer requests than the month before.

As a result, the number of agreed sales has also declined, with sales volumes slowing notably in Yorkshire & the Humber, East Midlands and East Anglia.

At the same time, the number of properties on the market fell for the fourth consecutive month.

This supply restriction led to a further increase in prices, with 78% of Rics members reporting that house prices had risen in their area. This number was, however, down 4 percentage points from the previous month, potentially reflecting reduced demand.

Despite slowing demand, most Rics members expected prices to rise throughout the coming year.

Simon Rubinsohn of Rics said: “Although the stamp duty cut is starting to have some impact, the overall tone of the market remains firm, with measures capturing price expectations showing little sign of easing.”

The boom in the real estate market had been supported by those looking for larger homes with gardens, according to the Rightmove real estate website.

However, demand for this type of property has dropped significantly – the number of sales agreed for single-family homes is down 20% from June and July 2020, he said.

Penny D. Jackson