UK house price balance shows sign of improvement in August

House price balance, a level of diffusion index that measures surveyors’ outlook on UK house prices, rose during the month of August, showing signs of improvement in an attempt to demonstrate that the economy has started to stabilize after the June 23 Brexit referendum.

UK’s house price balance came in at 12 percent in August after plunging to 5 percent in July, a more than three-year low, data released by the Royal Institution of Chartered Surveyors (RICS) showed Thursday. This essentially states that 12 percent of respondents saw a rise rather than a fall in house prices. A median estimate of economists forecasted no change from the previous month.

Further, the RICS index has been down trending for the past few months, especially since March this year and reached heights of deceleration post the June 23 Brexit vote. Despite the effect of the vote fading out gradually, it is expected to have a more noticeable impact on business confidence, consumer spending and overall growth heading into next year.

Meanwhile, a weaker British pound has also given foreigners greater incentive to visit the UK, as evidenced by the rise in retail spending over the summer.