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Signs of gentle cooling off in housing market as tax relief tapers – RICS

  • 12/08/2021
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Signs of gentle cooling off in housing market as tax relief tapers – RICS
The Royal Institute of Chartered Surveyors’s (RICS) monthly survey of members has shown signs of the property market cooling in July as the stamp duty relief began to taper.


A net balance of -9 per cent of survey respondents saw new buyer enquiries on the rise, while responses showed -21 per cent saw growth in newly agreed sales. 

Both indicators had softened since June, when results showed 10 per cent and -1 per cent for those indicators respectively.

As well, surveyors in the majority of UK regions saw sales volumes decline.

Looking ahead, five per cent expected increased transactions over three months, while this dropped to -2 per cent over 12 months.

The new instructions indicator recorded a net balance of -46 per cent, lower than last month’s -35 per cent and the fourth consecutive contraction.


Low stocks

On price, a net 79 per cent of respondents anticipated increases over three months, while over 12 months this was 66 per cent.

RICS said supply was “a crucial factor” in sustained price growth, with the fresh listings indicator at -46 per cent, lower compared to June’s -35 per cent.

In residential lettings, a net 52 per cent of respondents cited a rise in tenant enquiries.

Jeremy Leaf, former RICS residential chairman, now an estate agent in North London, said: “These figures confirm much of what we’ve been seeing on the ground since the stamp duty concession began to taper at the end of June. However, the difference has proved to be virtually seamless and only what we might have expected at this time of year.”

RICS’s July survey covered 471 branches and incorporated 264 responses.

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