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Figures show property boom slowing

12 Jun 2014

The Royal Institution of Chartered Surveyors (RICS) has released figures showing that the number of new inquiries from househunters has fallen to its lowest in over a year.

Figures from May also showed that the number of UK homes coming on to the market has shrunk for the fifth consecutive month, and house purchase loans fell to an 11 month low. Demand for homes in London, which has become a serious concern for many economists, also fell – but the number of London homes put on the market actually increased as owners tried to capitalise on the boom.

Approved house purchases this year in May totalled 62,202, 3% lower than April. The lowest number in recent years was 59,260 in June 2013.

Chief Economist for RICS, Simon Rubinsohn, said: ‘What we are really seeing is some of the very strong upward momentum starting to come off the housing market, as a lack of supply, higher prices, more prudent lending measures and some of the talk from Bank of England are creating a level of caution among sellers and buyers’.