Residential Property Values Decline since July 2009
Residential property values declined for the first time since July 2009 last month, according to the latest survey from the Royal Institution of Chartered Surveyors (Rics).
The organisation said a balance of eight per cent of its members reported a fall in house prices rather than a rise.
In June, a majority of eight per cent had recorded an increase in property values.
Rics said the north-west and London were the only two regions of the UK to see continued price inflation during July.
Demand from new buyers weakened for the second straight month, with ten per cent of surveyors reporting a fall in enquiries during the month, up from six per cent in June.
Ongoing difficulties in securing mortgages and growing uncertainty about the outlook for the economy were the main factors behind the decline, the organisation noted.
Nevertheless, the drop in demand did little to stem the flow of properties coming on to the market, as 33 per cent of Rics members said they saw a rise in the number of homes on their books during July.
This is the highest figure recorded by the organisation since May 2007.
According to Nationwide, the average house price fell by 0.5 per cent to 169,347 in July.
Category: Property News
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