House prices ‘continue to fall’

House prices are continuing to drop as a result of an unconfident market, it has emerged.

Figures from the Royal Institution of Chartered Surveyors (Rics) have revealed that for the seventh month in a row, more surveyors reported a decrease rather than a rise in the price of property.

During February, 64.1 per cent of respondents noted a fall, compared to 54.7 per cent the previous month.

In addition, new buyer enquiries decreased, with 37 per cent of surveyors reporting fewer clients, up two per cent on January.

Explaining the figures, Ian Perry, Rics spokesman, said: “While there is very little new supply coming onto the market, it is unlikely there will be significant price drops in the short term but the build up of unsold stocks will encourage buyers to negotiate lower asking prices.”

Loans for house purchases fell by 19 per cent during January, the Council of Mortgage Lenders reports.

© Adfero Ltd

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