Rics survey endorses fall in house prices

The latest survey from the Royal Institution of Chartered Surveyors shows that house prices in the UK have fallen for the fourth month in a row.

Price falls accelerated in November 2008, with 41% of Rics’ members reporting a drop in prices over the previous three months.

Approximately 23% of members reported that prices were still rising. Prices rose only in Scotland, and fell in England, Wales and Northern Ireland, according to the Rics’ report, which confirms evidence produced by other recent surveys.

Rics considers that the recent credit crunch continues to hit confidence in the market. It maintains, however, that while underlying economic fundamentals remain sound and the labour market remains strong, large falls in prices remain unlikely.

House price inflation and new mortgage approvals have slowed considerably under the impact of past increases in interest rates, combined with the impact of the Northern Rock crisis.

Enquiries from new buyers are still falling, while the number of newly agreed sales are dropping at their fastest rate since 1999, when the organisation first began to question members.