House prices fall faster in May

House prices are falling more widely than at any point since the start of the year, according to the latest figures from the RICS.

The RICS’ monthly housing index fell to -28 in May, down from -21, meaning 28% more surveyors reported price falls than price growth.

Other indicators in the survey also showed a weakening outlook, outside of London. Newly agreed sales in May slipped back from the previous month’s reading, with just 5% more surveyors reporting more sales. The average number of completed sales per surveyor also fell by 3.4 percentage points in the three months to May, to 14.7, the lowest level since January.

In addition, the average number of stocks per surveyor increased by 8.1 per cent over the month to 71.3 (from 66), as more properties stayed on surveyors’ books for longer.  

London remained the only region showing price increases rather than falls.

RICS housing spokesperson, Ian Perry, said: “Buyer interest in purchasing property remains flat across much of the country and there is little sign of this changing any time soon. Uncertainty over the economic outlook remains as important as the availability of mortgage finance in depressing demand.”