13 Feb

'Further fall' in prices

'Further fall' in prices

House prices continued to fall in January, new figures from the Royal Institution of Chartered Surveyors (Rics) have suggested.

In the month, 54.7 per cent more surveyors noted that there had been a drop rather than a rise in property prices, compared to 49.1 per cent the month before, Rics confirmed.

Demand for homes also appeared to diminish, the body remarked, at the largest pace seen since October.

Spokesman at Rics Jeremy Leaf argued that the recent financial turmoil seen has undoubtedly had an impact on the industry.

"Tightening mortgage lending criteria is a block to many who are keen to take the housing market plunge. Agents are finding it difficult to market properties to an audience which has decided to watch the current economic theatre from the wings," he commented.

He added that the situation may not look as bleak if service providers "filter" cuts to the base rate of interest into their services.

The Council of Mortgage Lenders has recently stated that affordability may be improved because of the Bank of England's cuts to the base rate of interest.ADNFCR-1222-ID-18466270-ADNFCR

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