Economists and surveyors believe that the UK property market could potentially be cooling down. According to a survey by the Royal Institution of Chartered Surveyors from July, property valued are likely to increase at a faster speed for homes located outside of London than those in the capital itself.
Surveyors have said that the number of people searching for new properties is also on the decline, with fewer people seeking new homes than at any point in the last 18 months. Despite this, the number of sold homes (an average of 25 per surveyor from April until the end of June) indicates that the market remains strong.
In fact, sales figures indicate that the UK property market it as its highest level since pre-crisis 2007. Much of the property market growth has been attributed to buyer-focused schemes such as the Help to Buy mortgage support programme launched by the government in 2013.
The Rics survey notes that the London property market is not faring as well as other parts of the country. It notes that while the UK property market is “broadly resilient, the London indicators are going into reverse.” London has been a hotspot for home sales over the past year, growing at a faster rate than the rest of the UK.
Overall, property prices are expected to continue to rise across the UK. Data puts the expected average price growth rate at 2.6% over the next 12 months. East Anglia is considered a capital of price increases, with surveyors anticipating annual pricing increases of 4.3% — significant higher than the national average.
New regulations regarding lending came into effect in April, with lenders required to carry out detailed spending and credit checks into borrowers. Economists claim these new regulations could contribute to a slight reduction in the number of new mortgage applications and home purchases.
