11
Oct
House prices fall for second month
House prices fell for the second month in a row during September,
new figures have revealed.
The dip was revealed in the latest figures from the Royal
Institution of Chartered Surveyors (Rics), which found that 14.6
per cent more members reported a fall than a rise in house prices
during the period. In August, 3.3 per cent more had reported a
downturn.
Areas showing the largest drops were Wales, the Midlands and East
Anglia.
Jeremy Leaf, Rics spokesman, attributed to the falls to a
confluence of prevailing market conditions which had prompted
buyers to negotiate on prices before committing to purchases.
He said: "The combination of rising interest rates, the
introduction of Home Information Packs (Hips) and volatility in the
financial markets resulting in tightening of lending criteria, has
certainly affected the confidence of buyers and sellers.
"As a result, some would-be buyers are turning to the rental market
whereas others, conscious that the next move in interest rates is
now likely to be down rather than up and market meltdown is highly
improbable, are seizing the opportunity to negotiate with more
flexible vendors in a less competitive market-place."
