This summer’s overheated property sales market cooled significantly during August, estate agents have reported.
The latest RICS residential market survey says homes sales slipped for a second month in a row but predicts the market will stabilise in the coming months.
RICS says the quietening market is largely down to the tapering-off stamp duty deadline and that the net balance of agents reporting a quiet market increased to -14%.
Agreed sales also declined at the same time – with a net balance of -18% reporting a fall.
North London agent Jeremy Leaf says: “Demand has softened since the stamp duty holiday taper began but the market hasn’t run out of steam.”
Looking forward, respondents to the RICS survey were more optimistic about the market’s prospects, with sales over the next three months expected to stabilise (+4%) before returning to modest growth (+7%) this year.
On a regional level, sales expectations for the year ahead are most positive across London, Northern Ireland and the South East of England.
Property pause
Tarrant Parsons (pictured), RICS Economist, says: “The latest survey evidence inevitably points to market activity taking a breather following the flurry of sales seen ahead of the tapered Stamp Duty holiday withdrawal.
“That said, while momentum has eased relative to an exceptionally strong stretch earlier in the year, there are still many factors likely to drive a solid market going forward.”
RICS says this includes a continuing lack of supply married to competition between buyers keeping price inflation on the boil.
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