95.1% more Chartered Surveyors reported a fall than a rise in house prices, an increase from 79.4% in March. Surveyors in East Anglia, the North and North West were unanimous that house prices are falling. The net balance in Scotland turned negative where previously it was the only UK region where the majority of surveyors were reporting house price increases.
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However, the scale of house price falls remains relatively small at this stage compared to past downturns. The lack of new instructions to sell property continues to provide a crutch to the market. Large numbers of distress sales (either repossessions or sales from those attempting to avoid the repossession process) have not yet appeared in the market place and, while mortgage arrears remain low and the employment situation remains strong, the lack of supply will continue to prevent large declines.
RICS Spokesperson Ian Perry said: "Although most surveyors are now seeing price declines, the extent of the fall, is at this stage, quite modest. The real issue is the collapse in the number of housing transactions. This has very real implications, not just for the property industry but also the high street and the wider economy.
"Sellers of white goods are likely to suffer if this low level of turnover persists for much longer. This is a key reason why the Bank of England should act at its next meeting by cutting the base rate."
(CD/JM)
