Signs of a slowdown in property market

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by Kay Murchie

Indications of a slowing property market in the UK have been revealed with a survey of the sector illustrating that price gains are harder to obtain after the latest interest rate by the Bank of England.

According to The Royal Institution of Chartered Surveyors, a net balance of 10.6% of surveyors recorded price increases in June, below the 22.5% noted in May.

In addition, enquiries from new buyers dropped off at the quickest rate since early 2006 as the latest round of interest rate rises affect first-time buyer affordability. Interest rates have risen 5 times since August 2006 to 5.75% - the highest since March 2001.

A spokesperson for The Royal Institution of Chartered Surveyors commented that property prices have started to cool considerably for the first time since the sudden growth in the housing market started in 2006. First time buyers are examining their finances and thinking twice before purchasing a property as further interest rate rises could be forthcoming.