Estate agents saw a further dip in the supply and sales of homes last month, the latest RICS residential index reveals.
The organisation, which spent much of this Autumn battling a financial scandal, says agents reported a net balance of -9% reporting a reduction in the number of homes sold.
Net balance is the number reporting fewer sales subtracted from those reporting an increased volume of property sales.
And -20% reported a fall in the number of properties being listed for sale, although demand remains strong with a +10% net balance reporting a rise in new enquiries.
This is not only impacting on sales activity but is a significant factor behind current house price rises.
In October, a net balance of +70% of respondents cited a rise in house prices, with the trend expected to continue over the next three months (net balance of +25%) and the year ahead (net balance of +69%).
Simon Rubinsohn (pictured, main image), RICS Chief Economist, commented: “Although the mood music around interest rates does appear to be shifting, for now the stronger influence on the housing market is the ongoing imbalance between demand and supply. The inventory on agents’ books appears to have slipped back towards historic lows and this seems to be underpinning both the current price trend and expectations for the next year.
Jeremy Leaf (pictured) north London estate agent and a former RICS residential chairman, says: “The monthly RICS housing survey is invariably a reliable indicator of market trends.
“This latest report is no exception and confirms what we are seeing on the ground – more resilience than expected after so many brought forward purchases in the summer taking advantage of the Stamp Duty holiday in particular.”