Surveyors: 'House Prices More Likely To Fall Than Rise'

 

The Royal Institution of Chartered Surveyors’ (RICS) August survey has revealed a fairly pessimistic mood amongst surveyors with many expecting prices to fall, rather than increase, over the next three months.

However, RICS spokesman, Jeremy Leaf, points out that while prices in many parts of the country may be falling, actual numbers of sales could start to increase as a result. Mr Leaf commented: “Looking forward, our price indicators are telling a mixed story which is consistent with the uncertainty hanging over the economy, the low level of interest rates and the lack of new house building.”

Meanwhile, the Council of Mortgage Lenders (CML) has reported that there were only 56,000 loans for house purchases approved in July. In addition, loans to first-time buyers fell to 19,400, down from 19,700 in June and from 20,100 during the same period of last year. The first-time buyer share of the market also fell to 34%, its lowest level since the credit crisis began in the summer of 2007. The CML suggests that loan criteria have now “tightened a little”, having relaxed earlier in the year, with the typical first-time buyer putting down a deposit of 24% in July, up from 21% in April and May. However, low interest rates have meant that those able to get a foot on the first rung on the property ladder have benefited from interest payments being at their most affordable since early 2004.

 

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