5 August 2010

The Royal Institution of Chartered Surveyors (Rics) is reporting that house prices are beginning to fall for the first time since July 2009.

This recent UK Housing Market survey suggests that the number of houses being put on the market has increased whereas the demand from purchasers has fallen back. This is the first time for over a year that this monthly survey has detected a downturn.

Rics spokesman, Ian Perry stated: "The fall in the Rics house price measure is broadly consistent with most other recent data that has been released...However, agents are still generally optimistic about sales activity, which should benefit from more realistic pricing of properties."

This reaffirms the importance of accurate valuations on homes in this current economic climate. The constant uncertainty regarding the future of the economy and the difficulties people are having acquiring a mortgage may have contributed to an overcautious approach from potential buyers. 

A spokesperson from Rics added: “Expectations for house price increases have also turned negative, with 28% more surveyors expecting prices to fall over the coming months.”

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