- Prior month -46 revised 2-48
- RICs housing survey for July -53 versus -50 estimate. This is the lowest since April 2009
- Agreed sales balance -44 versus -36 last month. Lowest since April 2020
- Near-term rental price balance +63 versus +55 last month. Highest since records began in 1999
The decline was influenced by interest rates reaching a 15-year peak. Interest rates for the most common two-year fixed-rate mortgage in Britain rose to 6.86% in July, the highest since 2008. Property sales in July decreased at the fastest rate since April 2020, during the height of the COVID-19 pandemic.
Demand from potential buyers also decreased, as reported by RICS.
RICS Chief Economist, Simon Rubinsohn, highlighted the economic uncertainty, rising interest rates, and a stricter credit environment as challenges for potential buyers.
This month, Nationwide reported a 3.8% annual decrease in average house prices in July, the largest drop since 2009 , while Halifax reported a 2.4% year-on-year decline. However, despite the declines, house prices remain over 20% higher than pre-pandemic levels.
Renting conditions have also become challenging due to landlords selling properties because of increased mortgage costs and stricter regulations. RICS reported the widest rent increases since their records began in 1999.
The GBPUSD is steady at 1.2718 despite the weaker data.