Rate of decline slows but all regions suffer

House price fell at a slower rate in January than before Christmas, according to the latest data from the RICS.

Its monthly housing market survey found 31% more surveyors reported prices falling than rising, an improvement on the 47% more that found prices going down in December.

The survey reported prices falling in every region of the UK, with falls smallest in London, Scotland and Wales

Signs of continuing weakening in the market were evidenced by the fewest number of transactions since June 2009, with surveyors selling an average of 14.6 homes, compared to 15.2 in December.

Demand from buyers continued to fall, and the expected New Year rush to put homes on the market did not occur. The number of new instructions continued to fall from December, albeit at a slower rate of a -3% balance, up from -14%.

RICS spokesperson, Ian Perry, said the key indicators of market activity remained in negative territory in January. He said: “Uncertainty over the prospects for employment, alongside the shortage of mortgage finance particularly for first-time buyers continues to weigh heavily on transactions levels. However, there is a very clear regional pattern emerging with London seeing a greater level of price resilience while in much of the North and Midlands, the market remains under greater pressure.”

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