RICS reports declining house prices in May but says confidence among surveyors is improving.
House prices are falling at their fastest rate since the last property crash, according to a RICS housing market survey.
The number of chartered surveyors reporting a decline in house prices in May was at its highest since 1992 with 49% reporting falls.
A slowing economy has reversed the upturn in buyers’ activity seen at the beginning of the year even though the jobs market remained secure.
RICS said that new buyer enquiries had slipped after remaining stable over past months and that sales for May were down 29% from last year.
However, the RICS report said that surveyors expected an improvement in sales activity because they believed interest rates are set to fall. Confidence is at its highest level since last November.
Only Scotland is still seeing price increases. The most noticeable price falls are in the Midlands and Yorkshire & Humberside, with the pace of falls also increasing in London.
RICS housing market spokesperson, Jeremy Leaf said: “An economic slowdown has led to an element of caution. Nevertheless, expected increases in income and employment growth will provide some underlying support to the housing market while the negative impact of interest rate rises will also fade later in the year.”
