House prices continue to fall as more properties go on sale

HOUSE prices fell for a second consecutive month in August and their lowest level since May 2009, the latest figures from the Royal Institution of Chartered Surveyors (RICS) have revealed.

It said a further increase in the supply of properties being placed on the market had edged prices lower but at the same time had increased sales expectations.

The RICS UK Housing Market survey, released today, showed 32 per cent more chartered surveyors reporting prices falling rather than rising in August – the biggest negative reading since May 2009. Regionally, surveyors are now reporting prices slipping in all regions apart from Scotland.

Expectations for house prices over the next three months continue to deteriorate, with 38 per cent more expecting prices to fall rather than rise.

RICS spokesperson, Jeremy Leaf said the latest survey suggested house prices may be slipping but surveyors believed sales could begin to pick up as a result. “That said, there can be little doubt that the restrictive attitude to the provision of mortgage finance will continue to limit transaction activity in the market,” he added.