RICS reveals drop in house prices
The latest housing market survey by the Royal Institution of Chartered Surveyors (RICS) indicates that property prices are falling for the first time in two years.
The report, which is based on data collected from estate agents and surveyors, shows property values decreasing in the Midlands, North West England, East Anglia, Wales, and Yorkshire and Humberside.
In London, the South East, the South West and Scotland, house price growth was still evident but average prices were down.
The RICS survey reveals that in August, 1.8% more chartered surveyors reported a fall, rather than a rise, in house prices.
This compares with data from July, when 10.8% more chartered surveyors reported a rise, rather than a fall in prices.
In addition, August saw the biggest decline in enquiries for three years from potential new buyers.
New instructions fell for the third consecutive month and the stock of unsold property on surveyors’ books also declined.
The month saw a 51% decrease in the number of four bedroom homes on the market, compared with August 2006.
Both the introduction in August of Home Information Packs for larger properties, and the high cost of moving at the top of the market are likely factors in the decline.
The RICS believes that rising interest rates are weakening demand in the housing market.
It has also reported that the results of the survey have severely dented surveyor confidence in the outlook for house prices.