UK house prices 'still dropping'

UK house prices remain on the slide as demand for homes continues to weaken, experts have said. The Royal Institute of Chartered Surveyors (RICS) says 95 per cent of surveyors are now reporting a fall rather than a rise in house prices, compared to a figure of 79 per cent it released in March.

Regionally, all surveyors in East Anglia, the North and the North West agree house prices are going down. RICS spokesman Ian Perry said:

“Although most surveyors are now seeing price declines, the extent of the fall, is at this stage, quite modest. The real issue is the collapse in the number of housing transactions.”

Mr Perry called on the bank of England to cut interest rates when its monetary policy committee next convenes. He also said sellers of ‘white goods’, such as washing machines and fridges, could soon end up being hit if the slump in the market continued for much longer.

The stats indicate would-be property buyers could be struggling to raise the necessary finances while some real estate investment professionals could be holding out due to the UK’s current climate of economic uncertainty.

RICS members offer advice on land, property, construction and environmental issues. The organisation has 140,000 members who operate out of 146 countries, supported by an extensive network of regional offices.