UK's house price growth slows in July post EU referendum

House price growth in the United Kingdom slowed during the month of July, striking fears about a slowdown in the country’s housing sector, post the European Union referendum held on June 23.

UK’s house price balance, a level of diffusion index that measures perceived changes in the country’s home prices, came in at 5 percent in July after falling to 16 percent the previous month, data released by the Royal Institution of Chartered Surveyors (Rics) showed Thursday. A median estimate of economists has forecasted a reading of 6 percent in July.

The RICS indicator measures expected changes in UK house prices based on an examination of property surveyors. A reading above zero suggests that more surveyors reported a rise in prices. The indicator reached a high of 53 percent in August of last year and has been on the downward trend since March.

Britain’s real estate market is expecting a period of instability and uncertainty as buyers adjust to the June 23 Brexit vote. However, the appointment of Theresa May as Prime Minister has shored up confidence that the UK would complete a new trade agreement with its European partners in the coming years.

Meanwhile, the Bank of England has shored up efforts to support the UK economy following post-Brexit instability. The Monetary Policy Committee last week voted to cut interest rates to a new record low and expand the size of bond purchases by a combined GBP70 billion.