A survey carried out by The Royal Institution of Chartered Surveyors (RICS), has revealed that the number of house sales agreed in August fell for the first time in two years. The survey also showed a large drop in the number of enquiries from new buyers, and an increase in the time it takes for sales to go through.RICS believes that momentum in the housing market in London has begun to slow down, due to flats and houses becoming more unaffordable. The momentum is expected to switch to areas such as Northern Ireland, The East Midlands and Scotland. Simon Rubinsohn, RICS chief economist, said “In some areas the recovery has only recently taken hold and affordability is rather less stretched.”“Significantly, members now expect price gains over the next year to be faster outside of the capital, than in it.”
RICS is blaming part of the slow down on the new, tougher, mortgage rules, which came into effect in April, and the prospect of an interest rate rise on the horizon.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.Setfords Solicitors are a national full service law firm, with conveyancing solicitors in London and across the country.