Residential property market 'losing momentum'
Edited by Andy Jowett.
The residential property
market appears to be weakening over the medium term, according to new analysis of government figures.
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (RICS), said the latest statistics from the Department for Communities and Local Government (CLG) show momentum in the housing sector is "waning".
The quarter-on-quarter change in price inflation in the three months to the end of September showed a 0.7 per cent rise.
Mr. Rubinsohn noted that while this was still in positive territory, it was down from an increase of 1.6 per cent between April and June.
Quarter-on-quarter figures are seen as a better indicator of underlying trends in property values than monthly changes.
The expert added that while prices look set to "slip a little further", research by RICS suggests the "downside will be quite limited" because of a rebalancing of supply and demand.
He said the "more pressing issue" for the property market is the low level of transactions taking place, as this has "more direct ramifications" for people's ability to move for work and therefore the wider economy.
According to CLG, the average house price stood at £211,815 in September.