13
Feb
'Further fall' in prices
House prices continued to fall in January, new figures from the
Royal Institution of Chartered Surveyors (Rics) have
suggested.
In the month, 54.7 per cent more surveyors noted that there had
been a drop rather than a rise in property prices, compared to 49.1
per cent the month before, Rics confirmed.
Demand for homes also appeared to diminish, the body remarked, at
the largest pace seen since October.
Spokesman at Rics Jeremy Leaf argued that the recent financial
turmoil seen has undoubtedly had an impact on the industry.
"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," he
commented.
He added that the situation may not look as bleak if service
providers "filter" cuts to the base rate of interest into their
services.
The Council of Mortgage Lenders has recently stated that
affordability may be improved because of the Bank of England's cuts
to the base rate of interest.