RICS data confirms October slowdown

Housing market data for October has been published by the Royal Institution of Chartered Surveyors (RICS) showing that while the market is slowing, a shortage of properties is supporting prices.

House price growth remained negative for the third month in succession, with 22.2% more surveyors reporting a fall than a rise in house prices.

The figure compares with 14.9% in September and represents the fastest decrease since July 2005.

During October, the number of new instructions decreased for the fifth consecutive month with 17% more surveyors reporting a fall than a rise in new instructions to sell property.

However, vendors appear to be under little pressure to sell and a shortage of properties continues to provide some support to prices.

This situation is unlikely to change while the economy remains strong.

In October, enquiries from new buyers declined for the 11th consecutive month; 41% more surveyors reported a fall than a rise.

The stock of unsold property per surveyor increased to 64.9, compared to 59.7 in September.

Taking a regional view, surveyors in East Anglia reported the largest price falls, followed by the West Midlands, the South West, East Midlands and Wales. No fall was reported for London.

According to RICS spokesman, Ian Perry, “The housing market is seeing the awaited slowdown … a decline in transactions may be in the offing as stalemate returns to the market, although a material fall in prices would require a weaker labour market prompting forced sales”.

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