A RICS survey of the housing market reveals that house prices are continuing to fall nationwide.
The survey, published today, shows 41% more chartered surveyors are reporting price falls than rises, which is 12% more than September and the highest number reporting a fall since December 1992.
A lack of new buyers has contributed to this large fall-off in activity, with the numbers of sales down 25% to their lowest level in nine years.
RICS housing spokesman Jeremy Leaf said: “Buyers are still nervous, which is not surprising given the quick fire interest rate rises over the summer. This is clearly reflected in the current strength of the lettings market.
“Sellers are accepting valuers’ estimates more readily, and negotiations before a sale is agreed are harder.
“Despite the gloom, the professionals on the ground believe that confidence will not deteriorate further over the coming months as the underlying factors, jobs and the wider economy remain stable.”
There is little evidence of panic selling and London surveyors are indicating a levelling off of prices which is traditionally a reliable indicator for emerging national trends and may even be an early signal that declines are coming to an end.
Scotland is still enjoying price rises, though these are slowing and prices in Wales and northern England have shown modest falls while southern England is most affected by declines.
References: EGi News 16/11/04
