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Thursday, October 11, 2007

House Prices Fall

The Royal Institution of Chartered Surveyors (RICS) report that house prices across the UK fell last month, at the fastest rate for two years.

RICS stated that in September, 14.6% more surveyors reported a fall in prices rather than a rise. In August 3.3% more surveyors that reported a fall over a price rises.

In another indication that the property boom is over, new buyer enquiries fell for the tenth consecutive month.

Jeremy Leaf, a spokesman for RICS, is quoted in the Guardian as saying:

"The combination of rising interest rates, the introduction of home information packs and volatility in the financial markets resulting in tightening of lending criteria, has certainly affected the confidence of buyers and sellers.

As a result, some would-be buyers are turning to the rental market
."

Mr Leaf is of the view that the housing market is in for a soft landing, rather than total collapse, on the assumption that there are no other shocks to the economy.

London, as ever, showed a small rise in prices; as the market there is boosted by wealthy foreigners and those on multi digit bonuses.

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