UK housing market pauses for breath, surveyors say

Houses The housing market has had a different slant in London to much of the rest of the UK

The housing market "paused for breath" across the UK in July and went into reverse in London, surveyors have said.

Demand for UK homes fell for the first time since the start of last year, according to the Royal Institution of Chartered Surveyors (Rics).

This, and sales, fell more sharply in London than elsewhere, while the number of homes for sale increased.

Concern over affordability was one factor for the shift, although prices were still expected to rise.

Surveyors suggested that property price growth was likely to be faster outside of London than in it.

"The shift in the mood music amongst potential buyers in the London market has been particularly pronounced, but that is in a sense consistent with the move to a more sustainable market in the capital," said Simon Rubinsohn, chief economist at Rics.

"Elsewhere around the country, the market in general is showing a greater degree of resilience, but that largely reflects the fact that in some areas, the recovery has only recently taken hold and affordability is rather less stretched."

Activity has slowed in the past after a so-called "Spring bounce" in the housing market, as potential buyers' thoughts turn to holidays in the summer rather than homes.

However, surveyors suggested that the market might have changed, owing to the prospect of higher interest rates and warnings from the Bank of England that it was keeping an eye on any risk of a housing bubble.

However, the Bank's governor, Mark Carney, may have eased the fears of some mortgage holders in the Bank's quarterly inflation forecast.

He said on Wednesday that whenever interest rates did increase, they would still do so gradually.

line break
How much has your house made?

Enter your details into the calculator to find out:

iFrame

Find out more about this calculator

More on This Story

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Business Live

  1.  
    09:45: Greece stops privatisations

    The Greek government will freeze plans to privatise the country's dominant energy firm PPC, Energy Minister Panagiotis Lafazanis has told Greek television today. The previous government had passed legislation last year to spin off a chunk of PPC and privatise it as part of its efforts to liberalise its energy market under the terms of its IMF-EU bailout A planned sale of a 67% stake in the State owned Piraeus Port Authority has also been shelved.

     
  2.  
    09:28: Russian plan
    People walk in the Red Square

    The Russian government unveiled a 2.34 trillion-rouble ($34.8bn, £22.9bn) plan to tackle its economic and financial troubles prompted by a collapse in oil prices and Western sanctions over the Ukraine crisis. In the plan, the government said it would collect proposals for creating a 'bad bank' for problematic banking assets. It would also provide state development bank VEB with 300 billion roubles from the National Wealth Fund.

     
  3.  
    09:13: Greece euro exit? BBC Radio 4

    Greece leaving the euro wouldn't do irreparable damage to the eurozone, Carl Bildt tells Today. It is up to Greece whether it wants to stay in the eurozone or not, but the currency bloc itself is here to stay, he adds. "Leaving the eurozone is not going to sort out Greece's problems," he says.

     
  4.  
    08:58: Greece euro exit? BBC Radio 4

    "Greece evidently wants to stay in the euro," Carl Bildt, tells Today. There will be discussion and there will be division between the Greek government and the rest of Europe, he adds. "The rest of Europe already feels it has helped Greece massively and Greece has turned things around slightly, it's not a hopeless case but now, suddenly, they want to spend and go back to irresponsible policies," he says.

     
  5.  
    08:46: Newspaper review
    papers

    The Times reports doctors can now approve Eculizumab, a treatment for a rare kidney condition. It will cost the NHS £82m a year for the 200 people with Atypical hemolytic-uremic syndrome. The FT leads on Apple's performance. The Wall St Journal dissects the new Greek cabinet and the Daily Telegraph reports that the drop in petrol price is as good as a 1p tax cut.

     
  6.  
    08:32: Alibaba report
    alibaba

    Chinese regulators have accused online shop Alibaba of allowing sales of fake and poor-quality goods in a report that was withheld until now to avoid disrupting its US stock market debut. China's industrial regulator said Alibaba allowed unlicensed dealers to use its services and failed in consumer protection.

     
  7.  
    08:22: Market update

    Tokyo stocks reversed early losses to close 0.15% higher as a weak yen pushed the market into gains. The Nikkei 225 index at the Tokyo Stock Exchange, which fell 0.86% at the open, added 27.43 to end at 17,795.73. The benchmark Hang Seng Index in Hong Kong gained 54.53 or 0.22% to 24,861.81.

     
  8.  
    08:13: Nintendo
    mario

    Japanese videogame maker Nintendo said its April-December profit rose six-fold to $504m as a weaker yen boosted its bottom line and make up for slowing sales. It won't make as many sales for the full year as previously hoped, though.

     
  9.  
    08:05: Greece euro exit? BBC Radio 4

    Former Swedish prime minister Carl Bildt tells Today it is not just the Germans that oppose a renegotiation of Greece's debt repayments. He points to Finland which holds elections later this year and has some problems in its economy. He says it is very hard for Finnish MPs to tell the public they have to accept some cutbacks in public spending but Greece doesn't. "That doesn't really fly," he says.

     
  10.  
    07:48: EDF disconnects nuclear power plant
    A view of Heysham Nuclear Power Station

    EDF Energy has said it disconnected Heysham's 1-2 nuclear power plant at the Lancashire site from the electricity grid on Tuesday. "Unit 2 at Heysham 1 power station was taken offline on 27 January 2015," an EDF spokesman said in an emailed statement to the Reuters newswire. EDF tells the BBC it's an issue with a turbine. So it's a non-nuclear part of the plant. Should take "a few" days to sort.

     
  11.  
    07:34: AG Barr results
    bru

    Fizzy drink maker and manufacturer of Irn Bru said it delivered a "robust performance" and should hit analysts' targets for the year. It had 5% growth in the fourth quarter, "well ahead of the total soft drinks market."

     
  12.  
    07:26: Greece euro exit? BBC Radio 4

    Greece should tell Europe it will not pay its debt and will exit the eurozone, Lord Desai tells Today. He says the country has to decide whether it wants "misery now or misery forever". He suggests that has to be the starting point of any negotiations with the Troika - the IMF, ECB and EU. He adds no country has ever paid debts like this in the past. Germany did not pay all its reparations, he says. "The international community has to recognise you can't put such a incredible burden on a people regardless of whose fault it was," he adds.

     
  13.  
    Via Twitter Rory Cellan-Jones Technology correspondent
    apple

    tweets: Amazing Apple quarter: record $18bn profit, 74m iPhones - most profitable product in history? But iPads disappoint

     
  14.  
    06:57: Greek euro exit? BBC Radio 4

    Lord Desai says most of the debt Greece owes is to public bodies such as the European Union and IMF. Greece cannot continue to pay off its debts for the next 20 years, he adds, and Greece and Germany have to decide whether they can afford for Greece to leave the eurozone. Anne Richardson of Aberdeen Asset Management points out £8bn of bank deposits have left Greek banks since November because investors see a so-called Grexit as having come "one step closer".

     
  15.  
    Via Twitter Stephanie McGovern Breakfast business reporter
    port

    tweets: Morning from the Port of Tyne - where today I'm talking about exports. #economy

     
  16.  
    06:44: Greek euro exit? BBC Radio 4
    Greece"s Prime Minister Alexis Tsipras is accompanied by associates

    Now that the Greek election has been won by Syriza, thoughts have begun to turn to negotiations over the country's debts. Greece could request to pay no interest on those debts for about five years, Lord Desai, economist and chairman of the Official Monetary and Financial Institutions Forum, tells Today. "That would save them about 4% of GDP," he says. But, he adds, there "really is no human way that Greece can pay the debt without ruining at least one generation's future."

     
  17.  
    06:31: GDP growth Radio 5 live

    Anne Richards, chief investment officer of Aberdeen Asset Management is the markets guest on Wake Up to Money. "You have to be a wee bit careful with quarterly numbers as they are subject to a lot of revision," she says. "The overall picture for the year was reasonably positive." Low construction growth was "a bit worrying." Strong sterling is a drag on GDP growth. Reliance on services rather than making things is also a challenge, she says. More engineers are needed.

     
  18.  
    06:20: Apple profit Radio 5 live
    The Apple logo

    The biggest quarterly profit ever for a company: $18bn, has been posted by phone pedlars Apple. Daniel Eran Dilger who writes for AppleInsider tells Wake Up to Money. Apple makes a load of margin from its high-end phones. They also make a lot when you break your power cable and have to splurge £65 on a new one, as presenter Adam Parsons learned earlier this week.

     
  19.  
    06:12: Services growth Radio 5 live

    More from Greg Madigan, the boss Subway UK and Ireland on Wake Up to Money. Hospitals, service stations and forecourts, or "non-traditional locations" are a big area of growth for the firm, he says. He used to be an air traffic controller, he adds.

     
  20.  
    06:01: Services growth Radio 5 live

    Services is what's propping up GDP growth, we learned yesterday. Greg Madigan, the boss Subway UK and Ireland is on Wake Up to Money. "The price of oil has come down putting more money in peoples pocket... one of the things that benefit from more discretionary spending is food retail," he says. They have 2,000 stores in the UK and Ireland now.

     
  21.  
    06:00: Howard Mustoe Business reporter

    Good morning. Keep your thoughts on today's news rolling in via email bizlivepage@bbc.co.uk and on twitter @BBCBusiness

     
  22.  
    06:00: Matthew West Business Reporter

    Morning everyone. In case you missed it EDF became the last of the "Big Six" energy suppliers to cut its gas prices last night. And US tech giant Apple reported the largest quarterly profit in corporate history. Today sees trading updates come from Brewin Dolphin, Johnson Matthey, Sage and Anglo American. We'll bring you those numbers and more as we get them.

     

Features

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.