U.K. house prices pressures seem to have dropped in October

The U.K. house price pressures are likely to have dropped in October. The September RICS survey had recorded a continuing solid revival in new buyer enquiries from the June trough but a stalling of the improvement in new vendor instructions, noted Societe Generale in a research note.

This has resulted in a rise in the gauging of excess demand that is calculated as the difference between the two. The new vendor instructions are expected have risen slightly in October as the consumer reaction to the Brexit vote dropped. This would reduce the excess demand and price pressures too. Therefore, a small drop in RICS price balance is expected, added Societe Generale.