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More reports of house price falls House price falls 'are spreading'
(about 2 hours later)
The number of UK surveyors reporting falls in property prices has risen for the ninth month in a row.The number of UK surveyors reporting falls in property prices has risen for the ninth month in a row.
In the latest survey from the Royal Institution of Chartered Surveyors (RICS), 95.1% more surveyors saw house prices fall than rise in April. In the latest survey from the Royal Institution of Chartered Surveyors (Rics), 95.1% more surveyors saw house prices fall than rise in April.
That figure is up from 79.4% in March. In East Anglia, and the North and North West of England, surveyors said unanimously that prices had fallen. That figure is up from 79.4% in March, with all surveyors in East Anglia, and the North and North West of England, reporting price falls.
The number of properties waiting to be sold also fell slightly in April. There has also been a continued fall in enquiries from prospective buyers.
The average ratio of completed sales to unsold stock fell to 21.1% from 24.6% in March. The survey found that 68% more surveyors noted a fall rather than a rise in new buyer enquiries, up from 51% in January.
Until now, Scotland has bucked the trend elsewhere in the UK, with more surveyors seeing prices rise than fall. "The real issue is the collapse in the number of housing transactions," said Rics spokesman Ian Perry.
But last month, the house price "balance" in Scotland also turned negative. "This has very real implications, not just for the property industry but also the High Street and the wider economy," he added.
Fewer transactions Declining market
The survey also found that 68% more surveyors noted a fall rather than a rise in new buyer enquiries, up from 51% in January. The Rics survey is latest evidence that house prices in the UK are now declining after a decade long boom.
Spokesman for RICS Ian Perry said: "The real issue is the collapse in the number of housing transactions. Other surveys, such as those from lenders including the Halifax and the Nationwide, have reported recently that prices are now lower than they were a year ago.
"This has very real implications, not just for the property industry but also the high street and the wider economy." Rics said that regions where prices had still been rising until recently have now been caught up in the general decline.
But Mr Perry said the scale of house price falls was still "relatively small compared to past downturns". In Scotland, which had bucked the UK trend, the house price "balance" also turned negative last month.
"The lack of new instructions to sell property continues to provide a crutch to the market," he said. Small falls
"Large numbers of distress sales - either repossessions or sales from those attempting to avoid the repossession process - have not yet appeared in the market place and, while mortgage arrears remain low and the employment situation remains strong, the lack of supply will continue to prevent large declines." The bursting of the house price bubble has been caused by a combination of prices that had reached unaffordable levels, and the effects of the credit crunch which has caused a sudden shortage of mortgage funds.
Large numbers of distress sales have not yet appeared in the market place Ian Perry, Rics
However, Mr Perry said the scale of house price falls was still "relatively small" compared to past downturns.
"Large numbers of distress sales - either repossessions or sales from those attempting to avoid the repossession process - have not yet appeared in the market place," he explained.
"While mortgage arrears remain low and the employment situation remains strong, the lack of supply will continue to prevent large declines."