The Capital Economics report by Paul Diggle and Ed Stansfield states: “Although most of the housing market data were little changed last month, there were signs that the dynamics of supply and demand are turning in favour of buyers.
“Short-term price pressures stemming from the lack of stock for sale appeared to ease last month as new sales instructions increased ahead of buyer enquiries for the fourth consecutive month.
“Mortgage approvals for house purchase were flat last month, whilst remortgaging activity declined further, indicating a lending market that remains subdued. The Land Registry and Acadametrics both showed a fall of 0.2% and the Halifax a 0.4% drop.
“The housing market data continued to send mixed messages last month. Activity measures remained subdued but did not typically weaken any further.
“House prices rose on some indices and fell on others.
“But with economic growth set to lose some momentum as the fiscal policy tightening bites, we think that house price falls will become the norm in the second half of the year.”
