Rics data reveals that housing market continues to slow

Permalink: Rics data reveals that housing market continues to slow
by Kay Murchie

Figures from the Royal Institution of Chartered Surveyors (Rics) have shown that the proportion of UK surveyors reporting falls in house prices has risen for the ninth consecutive month.

The Rics survey, which shows price falls more widespread than at any time since 1978, is further confirmation that the housing market slowdown is continuing.

The organisation noted that 95.1% more surveyors saw house prices fall than rise in April.

That figure is up from 79.4% in March, with all surveyors in East Anglia, and the North and North West of England, reporting price falls.

Furthermore, a continued fall in enquiries from potential buyers has been noted while the number of house sales being completed over the last 3 months has dropped considerably with an average of just 18 sales per surveyor, according to Rics.

68% more surveyors noted a fall rather than a rise in new buyer enquiries, up from 51% in January, said Rics.

Ian Perry of Rics said that the real issue is the collapse in the number of housing transactions. This has very real implications, not just for the property industry but also the High Street and the wider economy, added Mr Perry.

Lenders such as Halifax and Nationwide have recently reported that prices are now lower than they were 12 months ago.

Last month, a report by estate agent Knight Frank, said property prices in Scotland recorded price growth of 13% last year - ahead of any other area of the UK.

However, Scotland, joined the rest of the UK in seeing the balance turn negative in the latest data from Rics.

Surveyors were agreement in reporting declines in house values across East Anglia, the North and North West.

The property market slowdown has been caused by many factors, one being the credit squeeze which has caused a lack of mortgage funds.

However, the scale of house price falls was still relatively small compared to past downturns, said Mr Perry.

Large numbers of distress sales, either repossessions or sales from those attempting to avoid the repossession process, have not yet appeared in the market place, concluded Mr Perry.