A raft of reports show that those who dismissed talk of housing bubbles earlier this year were just about dead right - the market is slowing, significantly.
The Mortgage Market Review and warnings from the Bank of England have created a drag on transactions and prices according to latest data.
RICS' latest residential survey shows that a net balance of 53 per cent of surveyors in its monthly analysis reported an increase in prices in June - slightly down from 56 per cent in May, with prices rising in all 12 of its regions.
The south east of England and Northern Ireland experienced the strongest price gains for the second consecutive month, although the rate of price growth in London eased.
But demand for property stands at its slowest pace since the beginning of 2013, with the London market particularly affected by the increased air of caution, where buyer demand fell for the second consecutive month in June.
The slower trend in demand has also been reflected in RICS' newly agreed sales balance - a good indicator of market activity - which is showing the most subdued pace of increase since autumn 2012. Meanwhile, new instructions increased for the first time since December 2013.
And although we at Estate Agent Today have long cautioned against taking any one month's single price index too seriously, the latest measure from the Halifax also shows an easing - with prices actually dropping 0.6 per cent in June across the UK.
Halifax's quarterly measure is more encouraging but still shows a sober picture.
It suggests that prices in the three months to June were 8.8 per cent higher than in the same three months a year earlier.
The number of sales edged down by three per cent in May to below 100,000 for the first time in six months; however, transactions are still 15 per cent higher than in May 2013.
New buyer enquires fell for the sixth consecutive month in May, which if sustained could moderate further growth in demand says the Halifax.
And no one anywhere is talking bubbles' any more...
Comments
Hmm, interesting. Those who said we weren't in a property bubble must be feeling a bit daft now. I've always thought that the housing market was booming too fast for its own good. That level of growth can only go so far before it becomes unsustainable, plus housing prices can only rise so much before people get tired of paying an arm and a leg for property!