UK housing market subdued in July as sales and enquiries falter

Housing activity in the UK disappointed in July, with both sales and enquiries seeing a continued lack of momentum, according to a new survey.

Research from the Royal Institute of Chartered Surveyors’ revealed that the national price growth indicator slowed once again last month, with London and the South East pulling down the UK average.

The survey's main gauge for price growth fell from 7% in June to 1% for last month, the softest reading since early 2013.

RICS attributed the slowdown in housing market activity to low stock numbers, political uncertainty and recent tax changes.

More worryingly, the survey forecast that this trend was likely to continue in the coming months as further instability surrounds the political landscape.

RICS attributed the slowdown in housing market activity to low stock numbers, political uncertainty and recent tax changes

"Sales activity in the housing market has been slipping in the recent months and the most worrying aspect of the latest survey is the suggestion that this could continue for some time to come," said RICS chief economist Simon Rubinsohn.

According to the survey, property sellers are consistently falling well below asking prices, especially when it comes to the top end of the market.

Of the respondents, 33% said the agreed price was up to 5% below the asking price, while 68% of those in the top bracket fell below the set price.

"Lack of new build in the wake of the financial crisis is a more fundamental factor weighing on the market. And there are some very real consequences for the economy from all of this including the impact on the ability of people to be mobile when looking for work," Rubinsohn added.