Leading surveyors have reported that property prices are set for a fall once again as the number of sellers continues to outweigh demand.
The Royal Institution of Chartered Surveyors (Rics) claimed that 44% of its members saw prices fall in the past three months, with only 6% reporting that prices had risen. 50% said they had been stable.
Meanwhile, the Council of Mortgage Lenders (CML) reported that the number of home loans approved in August had fallen by 8% on the previous month. The total number, 51,600, was 3% on the same month last year however.
Uncertainty over the economy as well as high deposits being required by lenders, making it difficult for first time buyers, were blamed for the fall in demand, with Rics spokesperson Ian Perry claiming that it was “very much” a buyers’ market.
“First-time buyers are in particularly short supply as the high deposits required by lenders prevent them from taking their first steps on the property ladder,” he said.
“Without sufficient demand, property prices continue to slip back.
“However, many areas are reporting a correction, rather than dramatic falls in prices, and vendors who are prepared to be realistic with pricing are still able to achieve a sale.”
The CML figures showed that just 18,300 mortgages approved were to first-time buyers, 5% down on the previous month and a 3% fall compared with August 2009. However, the typical deposit being demanded by lenders has eased from 24% in July to 21% in August.
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