House Price Update 11 August 2010

UK House Prices Situation: Prices falling in many regions

UK House Prices Forecast: Continued weakness throughout most of the UK

RICS Figures Show Prices Fell In July

House prices are falling in most regions of the UK – that's the finding of the latest RICS Housing Survey. The survey, which questions chartered surveyors throughout the UK, found that 8% more surveyors saw falling prices than rising prices in July.

Surveyors also reported a fall in new buyer enquiries and an increase in new seller instructions – believed in part to be caused by sellers testing the waters now that HIPs have been abolished.

This combination of increased supply and reduced demand is likely to cause prices to weaken further, as those buyers who are left in the market find themselves in a strong bargaining position.

Price falls were recorded in all regions of the UK except London, Scotland and the North West of England. The largest falls were seen in the East and West Midlands, with Northern Ireland and Wales also faring badly.

Unsurprisingly, estate agents' price expectations for future months also fell badly in July, with 28% more surveyors expecting to see falling prices than rising prices.

Land Registry Figures Show 0.1% Rise In June

The latest house price index published by the Land Registry shows that average house prices in England and Wales rose by 0.1% in June, leaving the annual rate of change at 8.4%.

Land Registry figures are the most accurate reflection of the overall housing market as they include all property sales in England and Wales. However, because they rely on completed sale data, they always lag behind other house price indices – hence why the figures for June have only recently been published.

Read about UK House Price indexes / key statistics that track the ups and downs of house prices

Read our take on the Credit Crisis the effect on UK House Prices and Mortgages. A Special Report

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