The housing market can officially be considered cooled off according to the latest research data from RICS, the Royal Institution of Chartered Surveyors.  July saw much of the heated sales figures drop temperature as the plunge took place as fast as during the onset of the credit crisis.  The measures applied to the market earlier in the year are now showing signs of being quite effective much to the delight of those with the Bank of England who developed the slowing tools.

The stage is now set for the average house price to start falling in the UK as demand is slowing entering the cooler weather stage of the year.  The most rapid decline in the number of house inquiries has just transpired since spring 2008.

Simon Rubinsohn, chief economist at RICS, commented on the slowing measures initiated by the Central Bank, saying: "A range of policy initiatives adopted by the Bank of England in recent months – alongside heightened expectations surrounding a turn in the interest rate cycle – has clearly had an impact on sentiment in the market.

"The shift in the mood music among potential buyers in the London market has been particularly pronounced but that is in a sense consistent with the move to a more sustainable market in the capital."

The UK housing market started the year aflame and continued its torrid pace into the spring.  The pace was impossible to maintain according to many within the housing market.

Along with slowing demand for houses on sale, the UK remortgage market is still holding steady with many house owners waiting to see exactly what the outcome of the base rate will be in the coming months.