The pace of house price increases slowed in the West Midlands during June, as the effects of the recent interest rate increases start to work their way through the market, according to the latest UK housing market survey published today by the Royal Institution of Chartered Surveyors (RICS).
The number of properties coming on to the market within the region fell back as supply levels began to normalise following the delayed introduction of the Home Information Packs. Despite a national fall in demand, the West Midlands continued to buck the trend in new buyer enquiries which increased at the quickest pace since last August.
After a moderate rise the previous month, house price inflation slowed in June but for the most part remained unchanged. Almost three quarters of Chartered Surveyor estate agents in the region (71%) reported no change in house prices, up 9% from May. A further 17% reported a rise in prices, down 9% on the previous month, while 12% reported a fall.
Ben Hudson, RICS West Midlands spokesperson and director at commercial real estate agents CB Richard Ellis, comments on the picture for the West Midlands: "Following the postponement of HIPs, and the ensuing confusion for the general public, it is not surprising we have seen a fall in the number of properties coming on to the market, but it is pleasing to see that house price stability continues. However, the recent interest rate increase, the fifth since last August, may take its toll on the market as we enter the traditionally quieter holiday season. On the positive side, the new homes market in the region has continued to forge ahead during the past month with new developments proving to be in high demand and city centre apartments still a strong draw for investors."
