Rotation away from the capital after strong outperformance Price momentum remains firm at the national level Buyer enquiries rise more modestly while new instructions to sell increase slightly London activity and expectations data softens The June 2014 RICS Residential Market Survey shows that price momentum remains strong at the national level although activity indicators are pointing to some moderation in the positive trend. While the growth in demand continues to outpace supply, the overarching picture is a rather more balanced one this month. The balance of new instructions actually turned slightly positive for the first time in six months while new buyer enquiries recorded a more modest gain than previously. The South East and Northern Ireland experienced the strongest price gains for the second consecutive month while the rate of price growth in the London market appears to be easing. Anecdotal evidence suggests the tightening in mortgage underwriting standards resulting from the introduction of the Mortgage Market Review (MMR) is slowing the volume of transactions. Meanwhile, increased speculation regarding the timing and pace of interest rate rises, alongside heightened rhetoric from the Bank of England regarding the risks, is resulting in more buyer caution. This may be at least partly responsible for the flatter trend in the RICS new buyer enquiries balance.. The London market appears to have been particularly affected by the increased air of caution with buyer demand contracting for the second consecutive month in June; this does however follow fifteen successive monthly increases. The slower trend in demand has also been reflected in the RICS newly agreed sales balance, which is showing the most subdued pace of increase since late 2012. Sales were nevertheless reported to be increasing or broadly stable in all areas but the London market. Moreover, sales expectations remain firm across all areas at both the three and twelve month horizons. Significantly, the lack of supply that has been exerting upward pressure on prices across the country is beginning to show some signs of easing. A much more mixed supply picture is now emerging across the country, with London seeing new instructions grow markedly this month, while in the East Midlands and East Anglia, supply continued to contract quite substantially. Locally. The market continues to be active and a shortage of available properties in some sectors of the market has resulted in “competitive” buying. Whether the strong market is sustainable remains to be seen, but suspect it may be winter before there is any cooling. Some potential buyers are finding it harder to raise loans as lenders are being more cautious than previously. Please do not hesitate to contact me should you wish to discuss any matter regarding the marketing of your property. Oliver Miles FRICS EBEng RICS Registered Valuer 01929 426655 10th July 2014