Rics anticipating house price falls

| October 12, 2010 | 1 Comment
Rics anticipating house price falls

A high level of properties on the market continues to outnumber buyer demand, and this will impact negatively on house prices, according to the Royal Institution of Chartered Surveyors (Rics).

This echoes many reports, which all suggest house prices are heading for a double dip.

House prices slumped by around one fifth between autumn 2007 and early 2009 before recouping around half their losses over the last year.

However, there has been a drop in demand with mortgage approvals and consumer confidence both waning.

Last week, the Halifax revealed UK house prices fell by a record 3.6% in September compared with August.

According to the Halifax, the monthly decline was the biggest since records began in 1983.

Returning to the Rics, it said 44% of its surveyors saw prices fall in the past three months. Just 6% reported a rise, while 50% said noted they had been stable.

The Rics survey also established that surveyors were expecting further losses with the price expectations balance falling to -38 from -41, the fourth straight decline.

Many of its members say first-time buyers continue to be locked out of the market, primarily due to a lack of mortgage availability. Without a hefty deposit, this group of people continue to struggle to get onto the property ladder.

Tags: , , ,

Comments (1)

Trackback URL | Comments RSS Feed

  1. Chris says:

    Unfortunately supply does appear to be outstripping demand, simply because properties aren’t selling quickly enough.

Leave a Reply

Visited 2602 times, 1 so far today