RICS report finds fall in buyer demand due to interest rate rise
UK house prices slowed to their lowest rate of growth in one-and-a-half years in June as interest rate hikes deterred potential buyers, according to a report by the RICS.
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The latest RICS UK housing market survey has revealed that the number of surveyors reporting higher house prices in England and Wales outnumbered those showing declines by 10.6%, down from 22.5% in May, and the lowest reading since January 2006.
Ian Perry, RICS spokesman, said: "House prices have finally started to cool significantly for the first time since the recent mini-boom in the housing market got underway in 2006."
Although house prices rose for the 20th consecutive month, the rate of growth more than halved from 21.6% with new buyer enquiries falling across all regions except Wales, the West Midlands and Scotland.
The number of surveyors to report a fall in new buyer enquiries for June was 15% compared with 2% in May.
The RICS blamed the continued increase in interest rates which rose to a six-year high this month, for the fall in demand from buyers.
Perry added: "Interest rate hikes have begun to affect the psychology of the market with potential new buyers starting to think twice before buying a home."
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