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House price falls 'are spreading' | House price falls 'are spreading' |
(30 minutes 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, with all surveyors in East Anglia, and the North and North West of England, reporting price falls. | 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. |
There has also been a continued fall in enquiries from prospective buyers. | There has also been a continued fall in enquiries from prospective buyers. |
The number of house sales being completed over the last 3 months has fallen significantly said Rics, with an average of just 18 sales per surveyor | |
"The real issue is the collapse in the number of housing transactions," said Rics spokesman Ian Perry. | "The real issue is the collapse in the number of housing transactions," said Rics spokesman Ian Perry. |
"This has very real implications, not just for the property industry but also the High Street and the wider economy," he added. | "This has very real implications, not just for the property industry but also the High Street and the wider economy," he added. |
Declining market | Declining market |
The Rics survey, showing price falls more widespread than at any time since 1978, is further confirmation that house prices in the UK are now declining after a decade long boom. | |
The survey found that 68% more surveyors noted a fall rather than a rise in new buyer enquiries, up from 51% in January. | |
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. | 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. |
Rics said that regions where prices had still been rising until recently have now been caught up in the general decline. | Rics said that regions where prices had still been rising until recently have now been caught up in the general decline. |
In Scotland, which had bucked the UK trend, the house price "balance" also turned negative last month. | In Scotland, which had bucked the UK trend, the house price "balance" also turned negative last month. |
Small falls | Small falls |
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. | 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 | 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. | 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. | "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." | "While mortgage arrears remain low and the employment situation remains strong, the lack of supply will continue to prevent large declines." |