"They do unfortunately confirm what we are seeing - that the market is flattening, particularly in London and in those areas which have seen the most frantic activity in the past."
Its Agents' summary shows that demand weakened, although modest price inflation persisted in some areas due to weak supply.
The London market remained weak due to stretched affordability and prices of the most expensive properties were being reduced significantly in order to sell stock that had been on the market for some time.
Most positively, the Bank says residential mortgage availability "remained reasonable", and keen competition was expected to keep pricing low.
Its Agents have seen an increase in mortgages with terms over 30 years to enable applicants to meet affordability requirements. Few contacts anticipated much impact on mortgage demand from the increase in Bank Rate. Lenders typically reported strong demand, especially for fixed‑rate products, much of it driven by remortgaging as borrowers had sought to lock‑in low rates in anticipation of further interest rate rises.
New‑build sales remained strong nationally, underpinned by the Help to Buy scheme, but there had also been some signs of a softening in demand for new houses, as evidenced by greater use of incentives.
Jeremy Leaf, north London estate agent and former RICS residential chairman, said: "These figures are particularly interesting because they reflect what is happening on the ground and have always proved to be a reliable identifier of market trend.
"On the negative side, they do unfortunately confirm what we are seeing - that the market is flattening, particularly in London and in those areas which have seen the most frantic activity in the past. However, looking forward we are also seeing some positive signs for the New Year i.e. an increase in valuations and small house builder activity reflecting demand particularly for smaller, lower-priced property at the needs end of the market."
