UK housing market slows on tax and fee uncertainty — RICS survey

UK housing market slows on tax and fee uncertainty — RICS

Britain’s housing market misplaced momentum in July, with value development slowing to its weakest tempo in a yr as issues mounted over potential tax rises in Chancellor Rachel Reeves’ upcoming price range, in keeping with the Royal Establishment of Chartered Surveyors (RICS).

RICS’ home value stability fell to -13 from -7 in June (vs. Reuters ballot anticipated of -5), its lowest studying since July 2024. Measures of purchaser demand and agreed gross sales slipped again into destructive territory, whereas the near-term gross sales outlook was flat. Chief Economist Simon Rubinsohn stated sentiment was clouded by uncertainty over the Financial institution of England’s subsequent fee determination, after final week’s slim vote to chop borrowing prices, and hypothesis over additional tax hikes in October or November.

The rental market additionally weakened, with RICS’ gauge of recent landlord directions hitting its lowest since April 2020. Surveyors count on this to push rents increased, citing landlord issues about incoming laws to strengthen tenant rights.

The survey’s downbeat tone contrasts with experiences from Halifax and Nationwide, which each confirmed an increase in July home costs.

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GBP/USD is at its session excessive of 1.3581

This text was written by Aaron Cutchburt at investinglive.com.