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RICS report reveals falling prices

NORTH EAST house prices are starting to fall in similar vein to the rest of the UK, the Royal Institute of Chartered Surveyors (RICS) said yesterday.

More surveyors reported a fall than a rise in house prices in the UK for the first time since July 2009 as demand from purchasers slipped back and the number of properties coming to the market continued to increase.

It was a similar picture in the North East, with the number of chartered surveyors reporting falling prices increasing.

In June, 3 per cent more surveyors were reporting price rises while in July this had changed to 19 per cent more surveyors reporting price falls.

More RICS members in the region continue to forecast falling rather than rising prices. Meanwhile, sales expectations remain high at 39 per cent and new instructions continue to grow at 61 per cent.

Commenting on the regional market Richard Sayer, RICS North East housing market spokesperson and director at Rook Matthews Sayer, said: “The Housing Market Survey figures continue to show a mixed picture - stock isincreasing, enquiries remain at reasonable levels and both sellers and purchasers are more realistic in their expectations.

“However, there remains an air of uncertainty and lack of confidence to lifttransactions closer to historically ‘normal’ levels. We see little pressure for prices to significantly change and they have remained broadly static now for 18 months in the North East. Increased mortgage lending and better lender products remain vital to improving the market.

Mr. Sayer added that a confident housing market is a key element in gettingthe economy moving again and has urged the government to support initiatives to get first time buyers back into the market.

This was posted in Bdaily's Members' News section by Ruth Mitchell .