Yorkshire and the Humber sees house price growth stall in July

The growth of house prices in Yorkshire and the Humber slowed down last month, according to the RICS (Royal Institution of Chartered Surveyors) UK Residential Market Survey.

The survey showed that key market indicators covering price expectations, buyer enquiries, agreed sales and new instructions all dropped during the month of July.

Only 9% of Yorkshire and the Humber’s agents saw a rise rather than a fall in prices last month. Comparatively, UK house price growth posted the lowest survey reading in three years last month; just 5% more respondents nationally saw a rise rather than fall in prices.

As price growth continues to drop, only 11% of respondents in Yorkshire and Humber expect house prices to rise over the coming three months.

In addition, the survey revealed that interest from new buyers in Yorkshire and Humber continued to fall in July. A lack of stock in the region’s housing market is also causing ripples, with 39% more respondents to the survey having seen a fall in new instructions (homes coming on to the market). Supply is at or around record lows in most parts of the UK.

In line with the dip in demand and the worsening supply position, sales declined last month, with 23% more respondents in Yorkshire and the Humber reporting a drop in transactions.

Simon Rubinsohn, RICS chief economist, said: “The housing market is currently balancing a raft of somewhat mixed economic news alongside the latest policy measures announced by the Bank of England, which have already begun to lower the cost of mortgage finance.

“Against this backdrop, it is not altogether surprising that near term activity measures remain relatively flat.

“Critically, it is hard to escape the stark message regarding supply that is evident in the latest set of results with RICS data showing inventories on agents books around historic lows on average.

“This is a long running story that may have been exacerbated by recent events but clearly needs urgent action from the new government.”

Christopher R. Jowett of Jowett Chartered Surveyors in Huddersfield added: “The market for sales stalled slightly because of Brexit. There is uncertainty in the air and this could remain over the next two years.”

Michael Darwin of M W Darwin & Sons in Northallerton, also commented: “The market has continued to slow down; enquiries are well down, even taking into consideration the holiday period. Brexit has affected confidence - people are waiting to see what the full effect will be in the next few months.”