11 Oct

House prices fall for second month

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."

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