Research points to end of the house price boom


Research suggests England’s house price boom may have hit its peak.

Estate agent Haart, which operates around 100 branches, says it sees decreasing demand in the housing market, according to the FT.

Haart chief executive Paul Smith says: “We believe the nation has now neared the limit in terms of price rises.”

The estate agent says UK mortgage approvals fell 8.6 per cent in April.

The Royal Institute of Chartered Surveyors says this is partly due to a rush of investors trying to beat a stamp duty surcharge.

But Haart says reduced economic growth and completely unaffordable house prices are also playing a part.

Investment bank Jefferies equity analyst Mike Prew notes figures from Rics which show housing inquiries declined in April at their second highest rate since the financial crisis in 2008.

Prew says this “signals the slowdown could morph into a period of sustained house price deflation.”

House price inflation has been at it highest in London and the South-East.

Hometrack director of research Richard Donnell told the newspaper: “There are plenty of headwinds facing London irrespective of the referendum vote. It’s down to affordability — at some point you have to run out of buyers.”