House price falls slow in spring heat

The rate of house price falls fell to it lowest level since July 2010 in April, according to the latest data from the RICS.

A balance of 16% more surveyors saw price falls than rises in the month, down from 21% in March. All regions experienced price falls with the exception of London where the majority of surveyors saw rises.

New instructions to sell properties picked up strongly in April, rising from a balance of 4 to 18, a move RICS blamed on the unseasonally warm weather. However enquiries from new buyers flatlined, likely putting further downward pressure on prices.

The average number of sales per surveyor rose marginally, to 15.2, but is still well below the long running average of 26.5.

Michael Newey, RICS housing spokesperson, said: “The return of sellers to the market is positive, but activity still remains subdued and it is difficult to see it picking up materially over the coming months.

“Although there are signs that some lenders may be reducing their grip on the purse strings, there is still a long way to go before lending levels increase enough to have any real impact. Economic uncertainty may also continue to weigh on sentiment for a while to come.”