The number of new buyer enquiries slowed in July as the stamp duty holiday started to taper off, data from RICS has revealed.

The latest Residential Market Survey by RICS showed that new buyer enquiries shrank over the month, with a net balance of -9% of respondents reporting a fall. This was down from +10% in June and ended a four-month positive streak for the housing market.

As a result, the number of agreed sales also took a dip, with survey respondents reporting a net balance of -21% in July across the UK, and sales volumes slowing most notably in Yorkshire & the Humber, the East Midlands and East Anglia.

RICS also suggested that house price growth was again influenced by the lack of properties ready for sale, with a net balance of -46% of respondents reporting a fall in new listings, down further from the -35% reported in June.

A net balance of +66% of respondents nationally predict that prices will continue to rise over the next 12 months, a level up on +56% from June.

RICS chief economist, Simon Rubinsohn, commented: “Although the tapering in stamp duty is beginning to have some impact on RICS activity indicators, the overall tone to the market remains firm with the metrics capturing price expectations showing few signs of wavering.

“Significantly, a strong message from survey respondents is that buyers are continuing to place a premium on space with the prospect of a hybrid model of work being adopted by many organisations providing the opportunity for greater flexibility around location.

“This is being reflected both in the challenge some current homeowners are having in moving up the property ladder as well in stronger price expectations from the RICS survey for larger than smaller properties.”

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