RICS: UK election jitters push house sales to 11-month low

Reuters

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British house price inflation slowed last month to its

weakest since just after last year's Brexit vote, but this time domestic

political worries played the greatest role, a property industry body

said on Thursday.

The Royal Institution of Chartered

Surveyors (RICS) said its monthly house price index dropped to +7 in

June from +17 in May, its lowest since July last year and below all

forecasts in a Reuters poll of economists.

"The term

'uncertainty' is featuring more heavily in the feedback we are

receiving," RICS chief economist Simon Rubinsohn said. "This seems to be

exerting itself on transaction levels, which are flatlining and may

continue to do so."

RICS asked its members about the

main reason for slowing property sales. Some 44 percent blamed domestic

political uncertainty after Prime Minister Theresa May unexpectedly

failed to win a parliamentary majority in a June 8 election.

Just 27 percent cited Britain's looming departure from

the EU. But Brexit and property taxes were a bigger factor in London,

where luxury property in the center continued to see widespread price

drops.

Prices also fail slightly in surrounding areas

of southeast England, but rose strongly in most of the rest of England,

as well as in Scotland, Wales and Northern Ireland.

"The

latest results demonstrate the danger, however tempting, of talking

about a single housing market across the country," Rubinsohn said.

A

shortage of homes for sale remained a problem, too, he said. The number

of houses being put up for sale fell for a 16th consecutive month, and

estate agents had a record-low amount of property to sell.