This is a summer of heatwaves, sporting excitement and political upheaval. The news that Britain is set to have its seventh prime minister, most likely in the shape of Andy Burnham, may have provoked little surprise. Yet there is growing uncertainty about the direction of taxation and much else under the leadership of the new incumbent at Number 10 Downing Street.

The pace of change in the property market may be less dramatic than in Westminster. Yet there are signs that the market is entering a new phase of its own.

The backdrop for housing is arguably becoming a little more supportive. Inflation has proved more benign than many had expected and, while the Bank of England remains cautious, the direction of travel for borrowing costs looks increasingly downward. Mortgage rates have been edging lower, offering buyers a little more spending power and boosting confidence.

"The traditional summer lull may keep activity subdued in the near term, but the ingredients are in place for a busier autumn market if these trends continue. "

Meanwhile, the postcode hierarchy is being reordered, with the narrowing of the gap in prices between the traditional prime central London hotspots and other smart parts of the capital and its more suburban surrounds. The greater desirability of houses in almost every region means they continue to outperform flats in terms of value and speed of sale.

The mansion tax does not take effect until 2028. But it already looks likely that it will raise less cash than hoped, as a result of the slowdown in prices across prime markets. The High Value Council Tax Surcharge, as the mansion tax is formally known, was intended to be a progressive levy on affluent homeowners. But the tax’s impact in the Home Counties may rival its effect in London’s elite locations.

The Renters’ Rights Act, which took effect in May, is also having unexpected consequences. A flight of landlords was predicted by some, and, indeed, some are leaving the sector. But their properties are often being acquired by other landlords who seem to be able to make the sums add up. A drop in the stock of homes to let is driving up rents in some places, such as Inner London.

For more on these and the other emerging trends, read on for our latest edition of Market Insight.