Property transactions are down on last year and market sentiment is subdued, according to Bank of England agents.
Feedback from a network of Bank agents that will be considered by its Monetary Policy Committee (MPC) before it sets the Bank Rate this week, is that the housing market is softening.
“The property market has softened further. Sentiment continues to deteriorate with a range of headwinds holding back both demand and supply,” the agents’ summary of business conditions says.
Estate agents continued to report a subdued market.”
“Estate agents continued to report a subdued market, with house prices under more pressure in London and the South East and barely rising elsewhere.
“Transaction numbers are down on last year, in some areas by double digit percentages, and sales are taking longer to complete.”
Demand weak
The report adds: “Demand in the new build market is similarly weak, with higher mortgage rates weighing on affordability. House builders are reliant on bulk sales and incentives to support cash flow and there is no expectation of an imminent pickup in supply of new homes.”
The MPC announces its latest decision on Thursday, with it expected to hold the Bank Rate at 3.75%, although some members are in favour of a rise.
Last month, the Bank held interest rates, but three members of the nine-strong MPC voted for an increase.
