The latest monthly housing market survey by the National Association of Estate Agents (NAEA) shows a reduction in activity levels.
This had led some to believe that a slowdown in the market has begun while others blame the traditional summer break.
The NAEA's housing market survey for July shows that the number of new applicant enquiries, and the number of viewings, have both fallen and that the total number of new sales is 18% lower than in June.
NAEA chief executive, Hugh Dunsmore-Hardy, believes that it is too early to predict whether this is a seasonal blip or a trend that will continue to into the autumn and winter. He says: “The NAEA has been predicting a gradual slowdown in the housing market during the second half of the year, and our survey results for June and July certainly show lower activity levels.
“However, the reductions in activity are modest and follow very hectic months in the spring and early summer. Sales are still running at significantly higher levels than they were at the beginning of the year and there is still a marked shortage of new properties coming onto the market, keeping house price inflation running at a high level.”
The survey also shows that house prices remain buoyant, at 17.7% higher than in July 2001, an increase of 0.2% on last month's year on year figure.