MANCHESTER, England (Reuters) -A downturn in Britain’s housing market that followed a tax hike on property transactions in April eased off in June, according to chartered surveyors who expect a broadly flat picture in the months ahead.
The Royal Institution of Chartered Surveyors said on Thursday its measure of new buyer enquiries turned positive for first time since December and agreed sales also improved. But the change suggested a stable market rather than an upturn.
A balance of house prices was steady at -7%, meaning more surveyors reporting prices fell than rose, with London and the south east of England among the regions with the biggest drops.
The survey chimed with other signs of a subdued property market after buyers rushed earlier in the year to beat the March 31 expiry of a tax break for some home purchases.
Earlier this week, mortgage lender Halifax said house prices were flat last month.
An expected further drop in interest rates later this year is likely to help the market, analysts have said.
“The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility,” said Tarrant Parsons, RICS head of market research and analysis.
“The earlier distortion caused by transactions being brought forward ahead of the Stamp Duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge.”
Parsons pointed to a modest increase in expectations for sales in the near term but he said economic uncertainty – at home and globally – could hit activity.
(Reporting by Andy BruceEditing by William Schomberg)
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