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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. | |
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. | |
The survey found that 68% more surveyors noted a fall rather than a rise in new buyer enquiries, up from 51% in January. | |
"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. | |
Declining market | |
The Rics survey is latest evidence that house prices in the UK are now declining after a decade long boom. | |
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. | |
In Scotland, which had bucked the UK trend, the house price "balance" also turned negative last month. | |
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. | |
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." |