Hometrack has predicted that sales volumes are likely to slow with price growth moderating following the Brexit vote.
Its UK Cities House Price Index for June found that city level house price growth is starting to plateau at 10.2% year on year after a strong first half to 2016.
Hometrack’s new analysis of property listings data at city level to mid-July shows sales momentum in regional cities appears to have held up over the EU referendum period over the last quarter.
In contrast, the London market has seen a widening gap between growing new supply and lower sales pointing to slower house price growth in the months ahead.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “It’s interesting to see 10.2% house price inflation being described as ‘stalling’. Whilst price growth may be flat, it is still significantly higher than wage inflation. This means that houses are still becoming more expensive in real terms leading to more and more aspiring borrowers finding themselves completely outpriced in the relentlessly competitive housing market.
“There is no better time for our new government and Housing Minister to fulfil the promise to provide our country with thousands of new homes. Demand overwhelmingly exceeds supply and the only way this housing crisis will be solved is if we tackle the problem head on.”
