Key facts
- RICS house price balance rose to -28 in August, a five-month high.
- Net balance for new buyer enquiries reached its highest since January at -19.
- RICS members expect property prices to fall over the next three months but stabilize in 12 months.
- London shows the most negative price balance, while Northern Ireland reports rising prices.
- The net balance for rents over the next three months increased to +44.
LONDON, Sept 10 (Reuters) - A slowdown in Britain's housing market appears to be levelling off, with measures of buyer demand and agreed sales moving away from recent lows, the Royal Institution of Chartered Surveyors (RICS) said on Thursday.
RICS reported that its house price balance rose to a five-month high of -28 in August from an upwardly revised -29 in July. The net balance for new buyer enquiries also increased to its highest level since January, standing at -19.
"August's results show a market that is gradually finding its footing, with key activity indicators having become progressively less negative over recent months. That said, any potential recovery remains fragile," said RICS Head of Market Research Tarrant Parsons.
RICS members anticipate further property price declines over the next three months, but expect prices to stabilize over a 12-month horizon. London recorded the most negative price balance, while Northern Ireland reported rising prices.
The RICS sales expectations balance improved to -3 in August from -13 in July. Meanwhile, rising demand from tenants and fewer properties offered by landlords pushed the net balance for rents over the next three months to +44 from +33.
RICS noted that potential increases in interest rates or property taxation following the government's annual budget statement in October could negatively impact prices.
Separate data from mortgage lender Lloyds indicated a 0.4% annual fall in house prices in August, contrasting with Nationwide's report of a 1.6% rise for the same period. Britain's Office for National Statistics reported a 3.7% annual rise in private-sector housing rents in July and a 2.0% increase in house prices in the 12 months to June.
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