RICS reports falling house prices for January

Surveyors have reported continuously falling prices in the housing market in January. The RICS housing market survey reveals that 54.7% of surveyors reported declining prices in January.

The report also showed that the ratio between sales and stock of unsold property stands at a 28.6%, the lowest figure since May 2005.

The only part of the UK seeing rising property prices was Scotland, where figures increased from 3% to 7% last month.

Jeremy Leaf, RICS spokesperson, commented: “A lack of demand and confidence in the housing market is clearly behind the recent price slowdown. Tightening mortgage lending criteria is a block to many who are keen to take the housing market plunge. Agents are finding it difficult to market properties to an audience which has decided to watch the current economic theatre from the wings.

“However, if mortgage lenders filter the recent interest rate cuts into the market, demand should begin to increase. In the near term, the housing market will continue to be shielded from significant price falls while employment conditions are strong. The market need only fear a significant fall in prices if job loses start to multiply.”