UK House Price Growth In August, But Subdued: RICS

-RICS: Net 6% UK Surveyors Saw House Prices Rises Jun-Aug Vs 1% May-Jul

By Jamie Satchithanantham

     LONDON (MNI) - A survey of UK property surveyors found evidence of a

regional divergence in the UK housing market, with price rises only marginal at

a national level, with demand little changed in August.

     The Royal Institution of Chartered Surveyors survey found a net +6% of

respondents reported a rise in house prices in the three months through August,

having held flat at a net +1% in July. 

     Significant variances in house prices were found across the country,

according to the RICS report, with the London price stuck firmly in negative

territory and posting the worst outturn since 2008. Prices also turned softer in

the South East of England albeit to a lesser extent. East Anglia and Newcastle

also saw house price growth deteriorate in August.  

     Elsewhere in the UK, prices were reported to be fairly resilient with

Northern Ireland, the North West, Scotland, and the South West seeing the

firmest increases in net terms.  

     Looking at supply, the new sales instructions net balance improved, rising

to -1% from -11% in July. In terms of demand, however, things were little

changed in August, extending a run of flat or modestly negative readings for a

ninth straight month.

     Alongside this, agreed sales were once again broadly flat, recording a net

balance of -4%. At a national level this measure has not seen any growth since

November 2016.   

     Simon Rubinsohn, RICS Chief Economist, said "the latest results continue to

suggest that the greatest pressure on both prices and activity continues to be

felt in prime central London market. Although there are some signs that the

wider South East is also losing some momentum, anecdotal evidence suggests the

impact is very location specific. Meanwhile the numbers for most other parts of

the country point to a rather more resilient marketplace," Rubinsohn added.

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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