In the time period of the three months to the end of July house prices slowed in the UK. According to the Royal Institution of Chartered Surveyors (RICS), home sales, new instructions, and even inquiries into properties by new buyers fell. The cooling off within the housing market is being blamed as a response to the Brexit vote.

Nothing about the cooling off in the housing market is a surprise, as experts had told those concerned to expect a slowdown. This was especially so since the first quarter of the year involved second home buyers and landlords rushing to buy and beat the tax increase that would be imposed on April 1.

In a comparison to the previous quarter or months prior during the rush to buy, a natural correction could be interpreted within the data. Therefore, a good insight into what is happening in the housing market may have to wait until data comes in showing the final month of the third quarter. Not even a yearly comparison may not offer the best interpretation of the current state of the housing market since the Brexit vote qualifies as an unusual factor at play in the housing market and with consumer decisions.

Despite the cooling off, many are optimistic that a rebound in the market is not far off, including 23% of those in the RICS survey that expect prices to go up over the next 12 months.

RICS chief economist, Simon Rubinsohn, remarked, “It is not altogether surprising that near term activity measures remain relatively flat. However, the rebound in the key twelve month indicators in the July survey suggests that confidence remains more resilient than might have been anticipated.”